Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

I will neither wave nor dab back but I hope they have a good visit and that one of them will be down here at some point in the future.

11 o’clock

In my Budget Statement I announced an increase in the stamp duty rate for all non-residential property transactions, including agricultural land, from 2% to 6%. An economic rationale for this stamp duty increase was published on budget day. On the recommendation of the Minister for Agriculture, Food and the Marine, I also announced an extension of consanguinity relief for a further three years and that the stamp duty rate applying under the scheme would be fixed at 1%. Consanguinity relief is availed of in transferring farms to younger family members. It encourages the early transfer of farms to younger generations and is mostly relevant where the transferee does not qualify for an alternative relief such as the young trained farmer stamp duty exemption.

Following my Budget Statement I received correspondence from farming interests on a number of issues, including stamp duty. Following further discussions with the Minister for Agriculture, Food and the Marine I decided that, in addition to extending the period of the relief and fixing the associated stamp duty rate at 1%, the age rule for consanguinity relief would be removed. This means that it will be possible for all gifts and sales of farmlands to closely related family members who do not qualify for the 100% exemption available under the young trained farmer scheme to benefit from consanguinity relief at a stamp duty rate of 1%.

The question of an age limit will be revisited when the measure comes up for review towards the end of 2020. The young trained farmer relief will not be affected by the stamp duty rate change, as it provides for a full stamp duty exemption where the qualifying criteria are met.

I have also responded to representations from the Deputy and other Deputies and reintroduced a scheme that allows a farmer to claim relief from stamp duty where he or she sells and purchases land for the purposes of consolidating an existing farm holding. I have introduced these various reliefs in the expectation that they will be of benefit to the agriculture sector and in recognition of the importance of agriculture and the wider rural economy generally.

See this speech in context