Joe Sherlock (Cork East, Labour)
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Question 114: To ask the Minister for Finance the rate of stamp duty applicable on the sale or leasing of farms; the cost to the Exchequer of applying stamp duty relief to farmers under fifty; and if he will make a statement on the matter. [24620/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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In the case of the sale of farmland stamp duty is payable on the purchase price. Where the purchase price exceeds the exempt threshold of €10,000 stamp duty is payable at rates ranging from 1% to 9% on the amount of the purchase price as set out in the attached table. The 9% rate applies where the purchase price is over €150,000.

A lease of farmland is chargeable to stamp duty on the basis of the term of the lease and the amount of the premium and rent payable on foot of the lease. As with sales of farm land, where the premium exceeds the exempt threshold of €10,000 stamp duty is payable at rates ranging from 1% to 9% on the amount of the premium. The 9% rate applies where the premium is over €150,000. In addition stamp duty at the rate of 1% is payable on the average annual rent where the term of the lease is under 35 years. Where the term exceeds 35 years and is under 100 years the rate on the average annual rent is 6% and where the term exceeds 100 years the rate is 12%.

Information on the ages of transferees and lessees in property transactions, including farm transfers, is not required or maintained except where applications are received for Stamp Duty exemption on land transfers to young trained farmers. There is, therefore, no statistical basis on which an estimate could be provided for the cost of extending an exemption from Stamp Duties on both leases and sales of farms to all farmers aged under 50 years. The Deputy may be interested to know that the cost of the current stamp duty exemption for young trained farmers is estimated at €31 million in 2005.

In the case of a sale of farmland the bands and rates of stamp duty are as follows.

In the case of a lease of farmland stamp duty is payable on both the premium and the average rent payable under the lease. The same bands and rates of duty apply to the premium in a lease as apply to the purchase price in the case of a sale. In addition stamp duty is chargeable as follows on the average annual rent.