John Paul O'Shea (Cork North-West, Fine Gael)
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216. To ask the Minister for Finance if there is any relief on stamp duty for the purchase of agricultural land by an individual not from an agricultural background (that is, no green certificate); and if he will make a statement on the matter. [35036/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by Revenue that the Stamp Duties Consolidation Act (SDCA) 1999 provides for a charge to Stamp Duty at the rate of 7.5% on the purchase of agricultural land. This applies to the scenario the Deputy outlines, i.e., where agricultural land is purchased by an individual who is not from an agricultural background and does not hold a trained farmer qualification (often referred to as a “green certificate”).

However, the SDCA provides for some exemptions and reliefs in respect of this charge provided that certain conditions are met, even if the claimant does not hold a trained farmer qualification.

“Consanguinity relief” provides for a 1% rate of Stamp Duty to be applied where a transfer of agricultural land (including the purchase of land) is made between certain related persons. Section 2.3 of the Tax and Duty Manual referred to below explains the meaning of related persons for the purposes of the relief. It is important to note that if all the parties to the conveyance or transfer are not related to each other, then the relief does not apply.

One of the conditions of the relief is that the individual to whom the land is conveyed or transferred must farm the land or must lease it to another individual who farms the land. The individual who farms the land must do so for a 6-year period:

(a) be the holder of (or, within a period of 4 years from the date of the conveyance or transfer, become the holder of) a trained farmer qualification, or

(b) spend not less than 50% of the individual's normal working time farming land (including the land conveyed or transferred).

The relief can also apply where the individual leases the land to another individual who either holds the trained farmer qualification or actively farms the land on a continuous basis for 50% of their normal working time for the 6-year period.

The relief is subject to the overriding requirement that the land is farmed commercially with a view to making a profit.

Further information on Consanguinity relief is available in the recently published Revenue Tax and Duty Manual (TDM) which can be found at: www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/schedules/schedule-1-stamp-duty-transfers-land-consanguinity-relief.pdf

Whilst not directly specified in the Deputy’s example, in a scenario where an individual farms agricultural land but does not hold a trained farmer qualification, relief from Stamp Duty may also be available under section 81C of the SDCA.

Section 81C of the SDCA 1999 provides for a reduced rate of Stamp Duty where a farmer consolidates his or her agricultural land holdings. A ‘farmer’ for the purposes of claiming this relief is someone who spends not less than 50% of their normal working time farming the land and thus there is no requirement to hold a trained farmer qualification.

The relief is available where farm holdings are consolidated by way of linked sales and purchases of agricultural land and where land is transferred as a gift or by way of exchange. Stamp duty at the reduced rate of 1% is applied to the excess of the value of the land acquired over the value of the land disposed of, where the acquisition and disposal take place within a 24-month period of each other. The relief applies to acquisitions and disposals of land where the instruments are executed (signed, sealed or both) on or after 1 January 2018. The latest date on or before which transfers of land must be executed is 31 December 2025.

Further information about consolidation relief is available in the following Revenue TDM: www.revenue.ie/en/tax-professionals/tdm/stamp-duty/stamp-duty-manual/part-07-exemptions-and-reliefs-from-stamp-duty/section-81c-farm-consolidation-relief.pdf