IFA Farm Business Chair Rose Mary McDonagh has said the renewal of various stamp duty reliefs in the October budget is crucial for the development of the sector.
“Consanguinity (related persons) and consolidation reliefs under the stamp duty code along with the Young Trained Farm reliefs are vital to the sustainability and viability of the agricultural sector. They align with one of the nine objectives of the CAP – generational renewal,” she said.
The Young Trained Farmer Stamp Duty relief was capped in the Finance Bill of 2018 where it was amalgamated with the Stock and Succession Partnership Reliefs, and a lifetime limit of €70,000 was applied.
“This limit should be fully removed to allow for greater land mobility to encourage land transfer.”
Furthermore, the IFA Farm Business Chair said that agricultural land should be treated separately to commercial property for the purposes of Stamp Duty.
Rose Mary McDonagh said agriculture is a low margin, highly capital-intensive business which requires investment in its primary asset – land. At present, agricultural land is considered commercial property and therefore the rate of Stamp Duty that applies to farms in 7.5% up from as low 2% in 2017.
“Agricultural land must be removed from the commercial definition and revised in line with the residential Stamp Duty charge of 1%, up to €1m, and 2% thereafter,” concluded the IFA Farm Business Chair.