The Department of Finance will conduct a review this year into the Stamp Duty reliefs for farm and land transactions.
These reliefs, namely the Farm Consolidation relief and the Consanguinity relief, which were both provided for in the Finance Act 2017, are due to cease effect on December 31 of this year (2020).
In light of this, AgriLand understands that the Department of Finance has begun separate “evaluations” of both reliefs, with the purpose of determining whether the extension of both the Farm Consolidation relief and the Consanguinity relief should be considered by the minister for finance – whoever that might be – later in the year.
AgriLand also understands that the department will open the evaluations to the views of the leading farm organisations.
The farm organisations will be invited to give their views on the operation and the qualifying criteria of the reliefs; as well as their contribution to policy objectives; and any other observations the organisations wish to make.
It is understood that the farm organisations can make broad proposals on the Stamp Duty treatment of agricultural land, but not on wider agricultural taxation issues.
Farm organisations will have until March 16 to submit their views. Submissions received after that time may be ignored.
The results of the finance department’s evaluations are set to be published at an as yet undetermined date later in the year.
The purpose of the Farm Consolidation relief is, according to the department, to encourage the consolidation of farm holdings and to reduce fragmentation, thereby improving viability.
The purpose of the Consanguinity relief is to keep farm transactions within families.