6% duty on some farm sales

Some farm sales will be included in the non-residential property transfers for which stamp duty was trebled from 2% to 6% in the Budget, writes Stephen Cadogan.

The new 6% rate (which did not come as a complete surprise, a rise had been leaked days in advance of the budget) came into effect on Wednesday, with no “grandfathering” of legally binding contracts entered into prior to this date.

Moving the Dail motion for the vote which approved the 6% tax, Minister for Education and Skills Richard Bruton said: “The provisions are very clear. They provide a number of very substantial reliefs for farm land. They include the case of the young farmer, and the case of a person related by consanguinity. There is also a refund should the land be disposed of and used for housing.