Gerard Murphy (Cork North West, Fine Gael)
Link to this: Individually | In context

Question 181: To ask the Minister for Finance the position regarding correspondence (details supplied); his plans regarding stamp duty relief for young farmers; and if he will make a statement on the matter. [39814/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
Link to this: Individually | In context

In my recent budget speech I announced that certain existing capital gains tax, CAT, capital acquisitions tax, CGT, and stamp duty reliefs are being extended to cover the EU single farm payment entitlement. This entitlement will be recognised as a qualifying agricultural asset for the purposes of the CAT agricultural relief qualification test in relation to gifts and inheritances. For CGT purposes, the entitlement will qualify as an asset for the purpose of CGT retirement relief provided the farmer in question fulfils the ten year rule on ownership and usage of the land which will be disposed of at the same time as that entitlement. I also announced that the stamp duty relief for young trained farmers will also apply to the transfer of such entitlements to qualifying young trained farmers where land relevant to that entitlement is also being transferred. Each of these measures will be included in the Finance Bill 2006.

The Finance Act 2003 provided for full exemption from stamp duty on the transfer of land to qualifying young trained farmers, for a three year period until 31 December 2005. This exemption was extended in the recent budget for a further three year period to 31 December 2008. This will also be provided for in the Finance Bill 2006. These measures were announced, in conjunction with my colleague, the Minister for Agriculture and Food, with a view to assisting farmers, in particular younger farmers, to adjust to the major changes taking place in the farming community.