Paul Connaughton Snr (Galway East, Fine Gael)
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Question 253: To ask the Minister for Finance if there are circumstances under which a lower rate of stamp duty is payable; and if he will make a statement on the matter. [6389/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I understand the Deputy is seeking information on the terms of the stamp duty relief for farm consolidation.

Stamp duty relief in respect of exchanges of farmland between two farmers for the purposes of consolidating each farmer's holdings was introduced in the Finance Act 2005. Because of the limited take-up of farm consolidation relief in the 18 months since its introduction, it was decided in the recent Budget to extend the relief to qualifying exchanges of land where only one farmer is consolidating his/her holding. In such cases both farmers would qualify for relief, provided both farmers meet all other conditions of the relief.

However, one of the main difficulties with the take-up of this relief relates to the requirement to exchange land between two farmers. Therefore, in further consultation with the my colleague, the Minister for Agriculture and Food, and the farming industry, it has been decided to put forward an amendment at Committee Stage of the 2007 Finance Bill to introduce a new relief where only one farmer acquires and disposes of qualifying land within an 18 month period from the first qualifying transaction. Relief would be applied on the difference in the consideration, where the land acquired is greater in value than the land disposed of. Where the consideration for the disposal is greater or equal to the consideration for the acquisition, there would be no stamp duty liability.

As with the existing relief, under the new arrangements the farmer must farm and retain the land acquired and the land being exchanged must be approved by Teagasc as having consolidated the farm concerned.

However, commencement of the new relief will be dependent on State Aid approval from the European Commission.