The Revenue has confirmed that it will introduce measures in the coming weeks to relax the €70,000 lifetime threshold of tax relief for young farmers. The limit applied from January 2019 to all the main tax and stamp duty reliefs for young farmers on the buying and transfer of land.
The Revenue has confirmed that it will introduce measures in the coming weeks to relax the €70,000 lifetime threshold of tax relief for young farmers.
The limit applied from January 2019 to all the main tax and stamp duty reliefs for young farmers on the buying and transfer of land.
Many young farmers said it would have a detrimental effect on their plans for expansion.
The updated regulation will allow eligible young trained farmers to apply consanguinity relief before young trained farmer relief on the transfer or sale of land between certain relatives.
Currently, if a farmer received a farm worth €500,000 from a relative, he/she would be liable to pay stamp duty at 6% before reliefs were applied, meaning €30,000 of the €70,000 threshold would be used.
The application of consanguinity relief before the application of young trained farmer relief will reduce the amount of stamp duty to 1%, meaning the young farmer in this example would only use up €5,000 of his/her lifetime threshold.
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