Stamp Duty Relief on Transfer of Land (agricultural)

ormondeboy3

Stamp Duty Relief

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I have just turned 33 and have applied for entry to complete what was known historically as "the Green Cert" through Teagasc. The main purpose being to avail of stamp duty relief in relation to the transfer of land to young trained farmers.

A stipulation of this relief is that the person who the land is being transferred to must have an accredited farming qualification prior to the transfer of land.

Another stipulation is that the young farmer must be 35 years or younger at the time of the transfer.

I hope to begin this course in either September '08 or March '09 (depending on course availablity). The course is 18 months in duration. If I were to get offered a place on the September I would have the course completed before my 35th birthday (end of May, 2010).

However if I get offered a place on the March '09 course, I will not be finished until August 2010, which is a number of months after my 35th birthday.

My question is: Is there any way of accomodating this when applying for this stamp duty relief before I turn 35? ie Is it possible for the stamp duty relief to be processed pending the course being completed and the qualification acquired?

I know the stamp duty can be "paid back" to the young farmer if the qualification is acquired within 4 years.

My second question is what would the financial implications/burden be if this relief could not be excercised of at the time of transfer?

The farm would be valued around €1.7 million. With a house on it valued at around €400k

What would I,as the receiver of these lands, be liable for, if I was to receive them before I am 35 (without a suitable qualification).

Any help appreciated.

Past30Now

Hi Ormondboy,

The loss of the stamp duty relief would cost you 9% of the value of the farm being transferred. You haven't stated whether it's your families farm - but given that a stranger is quite unlikely to give you that kind of asset, and borrowing that kind of money today is a lot harder that it was last year - I assume its owned by your parents, in which case you would qualify for consanguity relief, which would cut your stamp duty bill in half.

In short, if you do not qualify for the young farmer relief, the loss to you would be 4.5% of the €1.7M. I have ignored the house in this calculation.


Regards,

Past30

ps Its my first post - I have to build up fifty posts before I can post on the soccer forum, and one or two of them should be useful to others.

ormondeboy3

Thanks for the reply.

The farm is the family farm. From looking at the Revenue website, my understanding is that what ever stamp duty is paid can be reclaimed within 4 years of the transfer taking place once the required qualification has been attained within that period.

Does this mean anything to you?

ormondeboy

Past30Now

Not really. I'm aware of the stamp duty relief, but I don't know the details off the top of my head. I had thought that you needed the qualifications and the transfer before your 35th birthday, but that is something you'll really need to check out with your farm's accountant.

Rgds,

Past30

Mr. Incognito

Ormonde

Given the size of the transaction and the fact it is the family farm I urge you to seek professional advice- I actually would know the answer but this is not a reliable forum to be relied upon.