Tom Neville (Limerick County, Fine Gael)
Link to this: Individually | In context | Oireachtas source

98. To ask the Minister for Finance his plans to consider the conditional retention of the 2% stamp duty rate on all agricultural land transfers to preserve and encourage land mobility; and if he will make a statement on the matter. [50733/17]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

In my Budget 2018 statement I announced an increase in the stamp duty rate for all non-residential property transactions, including agricultural land, from 2% to 6%. Based on Revenue’s Post-Budget Ready Reckoner this is projected to raise around €392 million in 2018.

In my Budget statement I also announced an extension of consanguinity relief for another 3 years and that the stamp duty rate applying under that scheme would be fixed at 1%. Consanguinity relief is availed of in transferring farms to younger family members and is particularly relevant where the transferee does not qualify for an alternative relief such Young Trained Farmer stamp duty exemption.

Following further discussions with the Minister for Agriculture, Food and the Marine I decided that in addition to extending the period of the relief and fixing the associated stamp duty rate at 1% the age rule for the consanguinity relief will be removed. This means that it will be possible for all gifts and sales of farmlands to closely related family members, who do not qualify for the 100% exemption from stamp duty under the Young Trained Farmer scheme, to benefit from the consanguinity relief at a stamp duty rate of 1%. 

The proposal outlined by the Deputy would result in a reduction in stamp duty yields which would have to be made up from other taxation measures in order to maintain overall Budget arithmetic. I am informed by Revenue that the estimated loss in yield in this case would be in the order of €32 million.  The Government must consider carefully any tax changes as any reductions will have to be offset elsewhere. I have no plans to implement a special rate of stamp duty for agricultural land as suggested by the deputy.