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Tuesday’s Budget is likely to see a significant change in land purchased costs, with a ramping up of stamp duty on the sale of commercial land likely.
Stamp duty is currently charged at 1% for property valued at under €1m.
It is 2% for land valued higher than that.
The same rate applies to agricultural land as to commercial property.
This rate has been in place since late 2011, with the purchaser of land being liable for the charge.
Speculation has grown that this rate will be changed by Finance Minister Paschal Donohoe when he presents his maiden budget this afternoon.
It could go up to the previous rate of 6% – likely on a sliding upwards scale.
Until we see the new rates, it is impossible to carry out any analysis of the impact, but it seems that any such change will fly in the face of the government’s stated support for improved land mobility.
It will be crucial that the existing exemption for young trained farmers is retained.
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