Willie Penrose (Westmeath, Labour)
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Question 176: To ask the Minister for Finance the stamp duty provisions, which are applicable to a farmer who wishes to buy lands; if there are any exemptions; if provisions for stamp duty liability that would be levied, could be paid over a period of time; and if he will make a statement on the matter. [43573/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Stamp duty is liable on the conveyance of any property by the person receiving the property. Where a farmer purchases land, he or she is liable to stamp duty at the rates applicable to non-residential property. However, there are a number of reliefs and exemptions within the stamp duty code that assist with the transfer of farmland.

There is an exemption from stamp duty for qualified young trained farmers receiving farmland. Farmers aged under 35 years who possess specific agricultural qualification may be eligible for this relief. In addition, transfers of land between certain blood relatives qualify for consanguinity relief which reduces the rate of stamp duty to one-half of the rate which would otherwise apply.

Relief from stamp duty is also available for exchanges of farmland between two farmers for the purposes of consolidating each farmer's holding. There are conditions relating to consolidation, farming and ownership attached to this provision. I announced in the Budget that this relief will be extended to qualifying exchanges of land where only one farmer is consolidating his/her holding. In such cases both farmers may qualify for relief, provided they both meet all other conditions of the relief. These changes will be included in the 2007 Finance Bill. However, commencement of these changes is dependent on EU approval.

Under the stamp duty legislation, any stamp duty payable on conveyances must be paid within 30 days of the transfer of the property concerned.