Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I move amendment No. 79:

In page 84, between lines 26 and 27, to insert the following:
“Amendment of Schedule 1 to Principal Act (stamp duties on instruments)69. (1) Schedule 1 to the Principal Act is amended—

(a) in paragraph (5) under the Heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance”—

(i) by inserting “of property that is land” after “inter vivos”,
(ii) by substituting the following for subparagraph (a):

“(a) the instrument is executed—

(i) on or after 1 January 2015 and before 1 January 2016, or
(ii) on or after 1 January 2016 and before 1 January 2018 and the individual by whom the property is being conveyed or transferred has not, at the date of the conveyance or transfer, attained the age of 67 years,

(aa) the individual to whom the property is being conveyed or transferred is an individual—

(i) who, from the date of conveyance or transfer and for a period of not less than 6 years thereafter—
(I) farms the land, or
(II) leases it for a period of not less than 6 years to an individual who farms the land,

and

(ii) who, in a case where subclause (I) applies—
(I) is the holder of or, within a period of 4 years from the date of transfer or conveyance, will be the holder of, a qualification set out in Schedule 2, 2A or 2B to the Act,

or

(II) spends not less than 50 per cent of that individual’s normal working time farming land (including the land conveyed or transferred),

(ab) in a case where subparagraph (aa)(i)(II) applies, the individual to whom the land is leased—

(i) is the holder of or, within a period of 4 years from the date of transfer or conveyance, will be the holder of, a qualification set out in Schedule 2, 2A or 2B to the Act, or
(ii) spends not less than 50 per cent of that individual’s normal working time farming land (including the land conveyed or transferred),

(ac) the land is farmed on a commercial basis and with a view to the realisation of profits from that land, and”,
and

(iii) in subparagraph (b) by deleting “the instrument contains a certificate by the party to whom the property is being conveyed or transferred to the effect that”,

and
(b) by inserting the following paragraph after paragraph (5):

“(5A) Where any of the conditions in paragraph (5) are not complied with, at the time of the conveyance or transfer or subsequently, paragraph (5) shall not apply, any additional duty shall be chargeable by reference to the rate of duty in paragraph (4) and the provisions of this Act, in relation to the delivering of returns, the charging of interest and (where appropriate) the incurring of a penalty shall apply from the date on which compliance with any such condition ceases.”.

(2) This section comes into operation on 1 January 2015.”.

Conveyances and transfers of certain properties between close relatives are currently subject to stamp duty at one half the normal rate of stamp duty. The reduced stamp duty is payable by the individual to whom the land is conveyed or transferred. This relief is commonly known as consanguinity relief and is due to expire in relation to instruments executed after 31 December 2014.
The amendments proposed to the Bill as initiated arise from recommendations of the agri-taxation review. They provide for the continuation of this relief for another three years in relation to the conveyance of land executed on or after 1 January 2015 and before 1 January 2018. However, the relief as contained in the Bill is confined to the conveyance or transfer of land by an individual who is 65 years of age or under where the person to whom the land is being conveyed or transferred is a farmer who, from the date the land is conveyed or transferred, spends more than 50% of his or her time farming land – including the land conveyed or transferred – for a period of not less than five years. In addition, the land must be farmed on a commercial basis and with a view to the realisation of profits.
The amendment takes account of further representations to ensure that the recommendations of the agri-taxation review are fully reflected in the Bill. My amendment gives farmers of any age who may wish to transfer their land to a close relative a final opportunity to do so before 1 January 2016. Thereafter, the relief will only be available where the farmer transferring the land is aged 66 years or under.
In addition, farmers to whom the land is transferred and who have a farming qualification can qualify for the relief provided they farm the land on a commercial basis and with a view to the realisation of profits, without the requirement of spending at least 50% of their normal working time farming. Farmers who do not already have a farming qualification are given a period of up to four years from the time they acquire the land to obtain such a farming qualification. Finally, the relief will also be available to farmers who, instead of farming the land themselves, lease the land for a period of not less than six years either to a farmer with a farming qualification or to a farmer who farms the land for at least 50% of his or her normal working time. In either case, the farmer must farm the land on a commercial basis and with a view to the realisation of profits.
This is the issue on which I had the conversation with Deputy Creed.

This amendment brings the position up to date legally with what I was saying in our exchange of views.