Young farmers claim over €16m in stamp duty relief

Young farmer claims for stamp duty relief jumped by 25% last year.

Revenue statistics show that up to 1,056 claims were made by young farmers in 2018. The total amount claimed was €16.8m – an increase of €9m compared to the previous year.

On average, each young farmer claimed €15,909, which was also a marked difference from the previous year when each farmer claimed an average €9,230.

Traditionally, counties with strong dairy activity see the highest number of young farmer transfers, but last year Cork, Tipperary and Limerick all saw a dip in their young farmer transfers

The increase indicates that young farmers are buying or inheriting more expensive land parcels.

Traditionally, counties with strong dairy activity see the highest number of young farmer transfers, but last year Cork, Tipperary and Limerick all saw a dip in their young farmer transfers.

In contrast, there was a steep increase in young farmer transfers in Galway and Roscommon, who made up 9% and 5.1% of all young farmer transfers respectively.

Louth had the lowest number of young farmer transfers for the third year running with just 0.7%

This change in fortune could be linked to land prices, where land availability and price becomes more difficult to negotiate in counties with a strong dairy influence.

The county with the highest number of dairy cows, Cork, still maintained the highest number of transfers with 14.9%, while the county with the highest number of suckler cows, Galway, came second highest with 9%.

Louth had the lowest number of young farmer transfers for the third year running with just 0.7%.

Qualified young farmers are eligible for a full exemption of stamp duty on transfers of farm land. The transfer can be by gift or sale.

Although young trained farmers can avail of a number of reliefs, Revenue has introduced a €70,000 lifetime threshold of tax relief for young farmers

The farmer must be less than 35 years of age on the date of execution of the deed of transfer, and the land must be retained by the young farmer for at least five years.

Although young trained farmers can avail of a number of reliefs, Revenue has introduced a €70,000 lifetime threshold of tax relief for young farmers.

This collectively includes young farmer stamp duty relief, consanguinity relief and the succession farm partnership credit.

Read more

Revenue relaxes young farmer tax limit

Donohoe dallies on stamp duty