Exemptions and reliefs

Reliefs for farmers

Consanguinity Relief

This relief only applies to land transfers. To claim this relief, you must:

• be related to the transferor
• and
• farm the land for at least six years or lease it for a minimum of six years to someone who will farm it.

If you are farming the land, you must:

• be registered for Income Tax
• hold a specified qualification or obtain one within a period of four years from the date you get the land
• or
• spend at least 50% of your time farming land (including this land transfer).

If, instead of farming the land yourself, you lease it to someone else to farm, that person must:

• hold a specified qualification or obtain one within a period of four years from the date you got the land
• or
• spend at least 50% of their time farming land (including this land transfer).

The transferor no longer needs to be under 67 years at the date of transfer. This condition only applies to transfers executed (signed) on or after 1 January 2016 and before 25 December 2017.

Young Trained Farmer Relief

To claim this relief, you must:

• be under 35 years of age
• hold a relevant agricultural qualification
• have submitted a business plan to Teagasc
• be registered for Income Tax
• and
• be the head of the farm holding.

You must also intend to:

• spend at least 50% of your normal working time farming the transferred land
• and
• retain ownership of that land

for a period of at least five years from the date of transfer.

The relief is an EU State Aid. This places restrictions on the amount of relief that may be claimed. These restrictions apply to instruments executed on or after 1 January 2019.

Farm Consolidation Relief

To claim this relief, you must be a farmer who is an individual who spends 50% or more of your normal working time farming.

If you are purchasing as a joint owner, only one of you must be a farmer.

You must:

• sell land and buy other land to consolidate your holding
• sell and buy within 24 months
• and
• have a consolidation certificate issued by Teagasc.

You must also intend to:

• retain ownership of the land
• and
• use the land for farming for a period of at least five years from the date you claim the relief.

The instruments effecting the sale and the purchase must be executed on or after 1 January 2018 and before 30 June 2023.

You pay Stamp Duty on the difference between the price for which you sold land and price for which you bought other land.

Relief for leases of farmland

To claim this relief, you must:

• hold a specified qualification or obtain one within a period of four years from the date of the lease
• or
• spend at least 50% of your time farming land (including this land transfer).

The lease must:

• be executed on or after 1 July 2018
• and
• be for a period of at least 6 years and must not exceed 35 years.

The relief is an EU State Aid. This places restrictions on the amount of relief that may be claimed.

Next: Transfers between spouses and between civil partners