Stamp Duty and farming
Leases of farmland
If you lease farmland, you may be eligible for relief from the Stamp Duty that is chargeable on the lease. The legislative basis for this relief is contained in Section 81D of the Stamp Duties Consolidation Act,1999.
An overview of the relief is set out on this page. For further information, please see the Revenue guidance document.
Qualifying conditions (lease)
The relief is available in respect of a lease which:
- is for a term of between 6 and 35 years
- and
- is for land used exclusively for farming carried on by the lessee on a commercial basis with a view to realising profits.
Qualifying conditions (lessee)
The lessee may be an individual or a company. If the lessee is an individual, the individual must, from the date the lease is executed (signed, sealed or both):
- hold a trained farmer qualification or another approved agricultural qualification (please see the Revenue guidance for further information)
- within the 4-year period from the date of the lease, become the holder of such a qualification
- or
- spend not less than 50% of their normal working time farming land, including the leased land.
If the lessee is a company, there must be at least one individual who, from the date the lease is executed:
- holds not less than 20% of the ordinary share capital of the company
- is a director of the company
- participates in the financial and operational decisions of the company
- and
- satisfies at least one of the following conditions:
- holds a trained farmer qualification or another approved agricultural qualification (please see the Revenue guidance for further information)
- within the 4-year period from the date of the lease, becomes the holder of such a qualification
- spends not less than 50% of their normal working time farming land, including the leased land.
Calculation of relief
Where the qualifying conditions are met, no Stamp Duty will be payable on the lease up to a limit of €50,000. This limit is applied on a rolling basis over a 3-year period, on a per-farmer, per-farm basis. This limit is in place to comply with State aid rules. Without the relief, Stamp Duty would be payable at the rate of 1% on the average annual rent.
Withdrawal of relief
The relief will be withdrawn if, during the first 6 years of the lease, any of the qualifying conditions cease to be met. In such a case, you must pay the full amount of Stamp Duty payable, together with any interest and penalties. The relief will not be withdrawn if the individual fails to meet the qualifying conditions due to death or permanent incapacity.
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