The Minister for Finance, Paschal Donohoe has outlined the scenarios where stamp duty at the rate of 7.5% applies on agricultural land.

Minister Donohoe was asked if there is any relief on stamp duty for the purchase of agricultural land by an individual "not from an agricultural background" in a parliamentary question from Fine Gael TD, John Paul O'Shea.

The minister said: "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.

"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," Minister Donohoe explained.

The first relief is "consanguinity relief," which provides for a 1% rate of stamp duty where a transfer of agricultural land, including the purchase of land, is made between certain related persons.

Minister Donohoe highlighted 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 six year period, be the holder of a trained farmer qualification, or become the holder of a qualification within four years of the transfer.

The individual must also spend not less than 50% of the individual's "normal working time" farming land, including the land conveyed or transferred.

According to Minister Donohoe, 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 six year period.

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

Minister Donohoe explained: "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.

"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," he added.

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 January 1, 2018.

The latest date on or before which transfers of land must be executed is December 31, 2025.