Stamp Duty and farming
Consanguinity Relief
Consanguinity Relief provides for a reduced Stamp Duty rate of 1% to apply on a purchase or gift of land between related persons. The legislative basis for this relief is contained in Schedule 1 of the Stamp Duties Consolidation Act, 1999.
The relief can apply to farm buildings on land, but it does not apply to residential property such as a farmhouse.
An overview of Consanguinity Relief is below. For further details, please see the Revenue guidance document.
Qualifying conditions
You must acquire the entire beneficial interest in the land from a related person. A list of qualifying related persons is contained in the Revenue guidance document. Examples include a parent, grandparent or child. Each party to the transaction must be related to each other.
You must:
- farm the land for profit for at least 6 years
- or
- lease the land to a person who farms it for at least 6 years for profit.
The person farming the land (you, or the person who leased the land from you), must:
- hold a trained farmer qualification or another approved agricultural qualification (please see the Revenue guidance for full details)
- obtain such a qualification within 4 years from the date the land is transferred
- or
- spend at least 50% of their normal working time farming the transferred land.
The deed transferring the land must be executed (signed, sealed or both) by 31 December 2029.
A company cannot claim the relief.
Normal working time
Normal working time is generally 40 hours per week. Where the normal working time is less than 40 hours, then 50% applies to the actual hours worked.
The working time condition can be met if the person who claims the relief farms the land through a company. The individual must be a director of the company and hold a minimum 20% shareholding in the company.
- Example 1
Ann transfers land to her son and her son’s wife. Consanguinity Relief is not available to either the son or the daughter-in-law. This is because the daughter-in-law is not related to Ann, and all parties to the transfer must be related to qualify for the relief.
- Example 2
John transfers land to his niece, Amy. Amy leases the land to her company, Lima Ltd. Amy is an 80% shareholder and director of Lima Ltd. Amy spends more than 50% of her working time farming the land as an employee of Lima Ltd. Amy will be eligible to claim Consanguinity Relief on the transfer.
Withdrawal of relief
Consanguinity Relief will be withdrawn if any of the qualifying conditions are not met. In such a case, the full amount of Stamp Duty must be paid, together with interest and penalties, if applicable.
Next: Farm Consolidation Relief