Fine Gael TD Pat Deering, who chairs the Oireachtas Agriculture Committee, told the Irish Farmers Journal that the stamp duty issue came up at a meeting of his parliamentary party with Minister for Finance Paschal Donohoe on Wednesday night.

“I’m hoping to meet Minister Donohoe again today,” Deputy Deering said on Thursday morning.

There’s an anomaly in the system that needs to be addressed

While not questioning the principle of the increase in the non-residential stamp duty rate, he said existing exemptions for certain categories of farmers could be expanded in the finance bill.

“There’s an anomaly in the system that needs to be addressed, particularly the 67 age limit,” he said.

Transfers of farmland to blood relatives currently attract a reduced 1% stamp duty rate, but only if the person disposing of the property is under 67.

Agricultural Tax Relief model

Also on Wednesday night, the Fianna Fáil parliamentary passed a motion to propose that the existing farm restructuring relief on Capital Acquisitions Tax (CAT) be extended to apply to stamp duty on agricultural land.

The motion was proposed by TD Jackie Cahill, who plans on meeting with representatives from the Department of Finance to discuss the proposal next week.

Where a farmer can prove that agricultural land that is bought to reduce a farm’s fragmentation and improve viability, they can claim CAT relief. Under Fianna Fáil’s proposal this would also apply to stamp duty.

Confusion

Confusion arose on budget day when Ministers Donohoe and Creed gave conflicting views on the impact of an increase in the stamp duty rate from 2% to 6%. As legislation took effect on Wednesday, it became clear that farmland was to be taxed at the higher rate, adding tens of thousands of euros to the cost of most transactions.

Both Fine Gael and Fianna Fáil support Budget 2018 as part of their Confidence and Supply Agreement.

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