Stamp Duty and farming
Farm Consolidation Relief
Farm Consolidation Relief may apply where, within 24 months, a farm holding is consolidated by disposing of qualifying land and acquiring other qualifying land. The disposal or acquisition may be by way of sale, gift or exchange. The legislative basis for this relief is contained in Section 81C of the Stamp Duties Consolidation Act, 1999.
An overview of Farm Consolidation Relief is below. For further information, please see the Revenue guidance document.
Qualifying conditions
To qualify for Farm Consolidation Relief, you must:
- spend at least 50% of your normal working time farming. If you are joint owners, this condition applies to only one of the joint owners,
- dispose of qualifying land and acquire other qualifying land within 24 months
- intend to retain ownership of the land for 5 years
- and
- intend to farm the land for at least 5 years.
A company may not claim the relief.
The transactions must take place within a 24-month period for the relief to apply.
Qualifying land
The types of property (which must be situated in the State) that can qualify for the relief are:
- agricultural land
- land suitable for occupation as woodlands on a commercial basis
- such farm buildings as are of a character appropriate to the land on which they are situated.
Such land will be qualifying land if Teagasc issues a consolidation certificate in respect of the land.
Consolidation certificate
A person who intends to claim the relief must first apply for, and obtain, a consolidation certificate from Teagasc.
This certificate identifies the lands acquired and disposed of. It certifies that Teagasc is satisfied that the acquisition and disposal of land comply with the conditions of consolidation.
The Department of Agriculture, Food and the Marine has published guidelines on the conditions for farm consolidation.
For further information, please see the Revenue guidance document.
Calculation of relief
Where the conditions for the relief are met, Stamp Duty is charged:
- on the excess of the value of the land acquired over the value of the land disposed of
- at a reduced rate of 1%.
Without the relief, Stamp Duty would apply at the rate of 7.5% on the full value of the land acquired.
Claiming the relief
There are two situations in which you may be eligible for Farm Consolidation Relief:
- You dispose of qualifying land and then acquire other qualifying land.
- You acquire qualifying land and then dispose of qualifying land.
1. Disposing of qualifying land first
If you dispose of qualifying land first, you can claim the relief when you acquire the other qualifying land. You can do this when you file the Stamp Duty Return when you acquire the other qualifying land.
You will pay the reduced Stamp Duty rate of 1% on the excess of the value of the land acquired over the value of the land disposed of.
- Example 1
Sarah sells land for €100,000 in September 2024 and, 6 months later, in March 2025, purchases more land nearer to her existing farm for €120,000. Sarah qualifies for Farm Consolidation Relief.
Stamp Duty is charged on the difference between the purchase price and the sale price, that is, on €20,000, at the rate of 1%. Without the relief, Stamp Duty would have been charged on the purchase price of €120,000 at the rate of 7.5%.
If the value of the land you acquire is less than the value of the land you disposed of, the amount of Stamp Duty you pay will be zero.
- Example 2 – value of land sold exceeds value of land subsequently purchased
Niamh, a farmer, sells land for €150,000 in October 2024 and, 8 months later, in June 2025, purchases other land for €100,000.
Niamh applies for, and receives, a consolidation certificate from Teagasc.
Niamh will not have to pay any Stamp Duty on the purchase for €100,000 because the value of this qualifying land was less than the value of the qualifying land that she sold.
2. Acquiring qualifying land first
If you acquire qualifying land before disposing of qualifying land, you will have to pay the full amount of Stamp Duty due.
When you dispose of qualifying land, you can claim a refund of Stamp Duty you paid on the earlier acquisition. To claim a refund in this instance, the Stamp Duty Return filed in respect of the earlier acquisition must be amended.
- Example 3 – claiming a refund on a purchase of land
John, a farmer, purchases land beside his farm for €200,000 in August 2024 and pays Stamp Duty of €15,000 to Revenue (€200,000 @ 7.5%).
Three months later, in November 2024, he sells a different parcel of land for €150,000. John applies for, and receives, a consolidation certificate from Teagasc.
As the qualifying land John purchased cost more than the qualifying land that he sold, John is eligible to claim Farm Consolidation Relief from Stamp Duty. This means that John was only due to pay 1% of the excess of the value of the land purchased over the value of the land sold.
The Stamp Duty owed to Revenue will be 1% of €50,000 (€200,000 - €150,000), which is €500. John can amend his Stamp Duty Return (dated August 2024) and claim a refund of €14,500 (€15,000 - €500).
Withdrawal of relief
The relief will be withdrawn if any of the qualifying conditions are not met.
The relief will also be withdrawn if you dispose of the land within 5 years of claiming the relief. The relief will not be withdrawn if the land is disposed of as part of a Compulsory Purchase Order (CPO).
In either case, the full amount of Stamp Duty payable must be paid, together with any interest and penalties.
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