Increase in the stamp duty rates is expected to impact on farmland prices

Last week’s Budget announcement that stamp duty on commercial property increased to 6% (up from 2%), effective from Budget Day, seemed to come as a shock to both farmers and the Department of Agriculture alike.

The rise in stamp duty comes after a relatively prolonged period of low stamp duty on land transactions since 2011.

Prior to 2008, stamp duty was at rates of up to 9% on land, so a move to 6% would in a historical context not seem outrageous.