Cathal Byrne (Fine Gael)

I refer to agricultural reliefs, in particular to the exemptions that exist for young trained farmers. They allow for the transfer from one generation to a farmer aged under 35 years who can claim a full exemption from stamp duty. At a time when the stamp duty rate is 7.5% on all non-residential land, it would be quite a significant burden were that tax exemption to expire. It is important that the tax relief is retained in next week's budget.

I refer to consanguinity relief, which is the reduction of the 7.5% rate of stamp duty to 1% for transfers from one generation to the next where they are related. That is an important tax relief because if it is not possible for somebody aged under 35 to transfer and inherit land, they will still benefit, albeit at the 1% rate, and save 6.5% on the standard non-residential rate of stamp duty. As we encourage the next generation to take up farming in Ireland, it is important that we protect these reliefs.

Many farmers across the country farm from a tax perspective as a sole trader rather than being incorporated into a company. One important relief is conditional gift relief. A farmer who has successfully farmed over a number of years may have saved a pot of money to purchase land, which, as everybody knows is scarce because nobody is making any new land. If a farm comes up for sale next door, that is a once-in-a-lifetime opportunity and the farmer may want to purchase or bid on that land, having saved for 20 to 30 years to be able to do so. Some farmers are never in a position to be able to bid on an adjoining piece of land.

The current tax regime, under the conditional gift relief, allows a farmer to use savings and transfer the land purchased using a pot of saved money to the next generation provided that they then use it for the purchase of an agricultural asset or land. If that relief was to disappear, hard-earned money saved to buy a piece of land when an opportunity presents itself would be subject to the maximum rate of 33% inheritance tax. That is wrong. It would not apply to farming in a commercial company structure. As so many farmers are sole traders, it is important that we protect the conditional gift relief that currently exists in the budget next week. I implore the Minister of State to take my comments back to the Department and work with the Minister, Deputy Paschal Donohoe, on them.