Budget 2021: Stamp Duty relief extension will help young farmers
'Minister Donohoe has made an important move in the commitment to young farmers.' Picture Denis Minihane.
The extension of Consanguinity and Consolidation Relief for the transfer of agricultural land to family members has been warmly welcomed by Macra na Feirme.
Consanguinity relief - which provides for a reduced 1% rate of stamp duty on land transfers - was due to expire at the end of this year but was extended for a further three years to December 2023 by Finance Minister Paschal Donohoe in today's Budget.
The Minister also extended Consolidation relief - which provides for a Stamp Duty rate of 1% to apply where the transaction concerned is part of a farm consolidation - for two years to December 2022.
“Minister Donohoe has made an important move in the commitment to young farmers; these reliefs are essential,” said Macra na Feirme President Thomas Duffy.
“Core to the Macra Pre-Budget Submission was the decision to extend Consanguinity relief is particularly important due to the limitations on State aid rules by the EU. “Similarly, as identified by the Macra na Feirme Land Mobility Service, land fragmentation is a major obstacle to young farmers - particularly in the border, midlands and western region - which consolidation relief addresses.
Mr Duffy went on to say that the tax reliefs were “essential” to young farmers.
“Macra na Feirme complements the efforts of the Minister for Agriculture, Food and the Marine, Charlie McConalogu, and the Minister for Finance Paschal Donohoe in continuing these essential reliefs for young farmers,” he added.
“Minister Donohoe referenced the road ahead during his speech and the road ahead for young farmers is considerably challenging.
“These reliefs act as an aid to entry, lessening the financial burden to young farmers starting out on their farming career.”
