Michael McGrath (Cork South Central, Fianna Fail)
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I assume the Deputy is referring to the relief from stamp duty that is provided for by section 81AA of the Stamp Duties Consolidation Act 1999. Section 81AA provides for relief from stamp duty in respect of transfers of agricultural land to individuals who come within the definition of “young trained farmer” on the date the deed transferring the land is executed, subject to certain other conditions being met.

The policy intent of the relief is to promote lifetime transfers of farmland and encourage more young people to pursue farming. This is reflected in the qualifying conditions of the relief, which require that the individual acquiring the land (the transferee):

• is under 35 years of age on the date of execution of the deed of transfer,
• holds an approved agricultural qualification,
• intends to spend not less than 50% of his or her normal working time farming the land for a period of not less than 5 years from the date the land is transferred, and
• retains ownership of that land for a period of at least 5 years from the date of the land is transferred.

I am advised by Revenue that it accepts that the requirement that the transferee intends to spend at least 50% of his or her normal working time farming the land may be satisfied where the farming activities are carried out through a company or a partnership. This could arise where the transferee leases the land to the company or partnership concerned. For the relief to apply in the case of farming activities carried out through a company, the transferee must be the main shareholder and working director of the company and must farm the land on behalf of the company.

Accordingly, while the relief is available only to individuals who come within the definition of “young trained farmer”, and not to companies, it may apply where the individual transferee subsequently leases the land, or part of it, to a company.

Further guidance on the operation of young trained farmer relief is available at: www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/section-81aa-transfers-of-land-to-young-trained-farmers.pdf.