At Budget 2018 on Tuesday of this week, Minister for Finance Paschal Donohoe announced that the plan to increase the stamp duty rate on sales of commercial land from 2% to 6%.

Confusion followed on whether or not agricultural land would be included in the measure.

It was only following an article by the Irish Farmers Journal on Tuesday afternoon there was clarity on issue. Farmers would be paying more for land sales in most circumstances.

And despite a late attempt by Independent TD Michael Fitzmaurice to have it amended, the measure was voted on and passed into law on Tuesday night by the Dáíl.

Irish Farmers Journal research shows that based on 34,000 acres of reported land sales in 2016, the new rate would cost farmers almost €14m.

Our analysis suggests a further 2,500 family farm transfers would also be liable. Also only one in three of all land sales in 2016 and family transfers qualified for a relief from stamp duty.

Row back

This has all led to anger from farm organisations as well as government and opposition backbenchers who were facing a backlash from their rural and farming constituents.

The Irish Farmers Journal can reveal that the Department of Finance is considering holding off applying the stamp duty hike on sales of land already in progress.

There has been no timeframe yet put on how far back the criteria would be for allowing these farm sales to progress without being applicable to the new stamp duty rate.

It is understood that those affected will need evidence that a sale has commenced.

The Department of Finance is also understood to be considering raising the current age limit of 67 for getting the 1% stamp duty rate on farmland transfer in families.

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