Working out your Stamp Duty

Farm Consolidation Relief

The Finance Act 2017 provides for a relief from Stamp Duty called Farm Consolidation Relief.

The relief rate is 1% of the chargeable amount and applies to transfers, gifts and exchanges.

How do you qualify for the relief?

You must be a farmer that is an individual who spends not less than 50% of their 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.  You must sell and buy within 24 months.

You can also claim the relief in the case of gifts and exchanges.

You must have a consolidation certificate issued by Teagasc.

For a period of at least five years from the date you claim the relief, you must intend to:

  • retain ownership of the land
  • and
  • use the land for farming

The instrument (written document) transferring the land from you (sale) must be executed (signed, sealed or both):

  • on or after 1 January 2018
  • and
  • before 31 December 2020.

The instrument transferring the land to you (purchase) must be executed:

  • on or after 1 January 2018
  • and
  • before 31 December 2020.

What does 'land' mean?

'Land' means:

  • agricultural land
  • land suitable for occupation as woodlands on a commercial basis
  • and
  • such farm buildings are as of a character appropriate to the land.

'Land' does not include farm houses or the land occupied with such houses unless the houses are:

  • derelict
  • and
  • unfit for human habitation.

The land must be situated in Ireland.

What is a consolidation certificate?

This is a certificate issued by Teagasc to the farmer who is selling and purchasing land to consolidate their holding.

The certificate:

  • identifies the land involved
  • the owners of the land
  • and
  • certifies that Teagasc is satisfied that the sale and purchase is for the purposes of consolidation.

How do I get a consolidation certificate?

You should contact your local Teagasc office for further details.

What is the chargeable amount?

The amount that is chargeable to Stamp Duty is based on the difference between the sale price and the purchase price. The sale price is the price for which you sold land. The purchase price is the price for which you bought land.

In the case of a gift or exchange, the chargeable amount is based on the difference in market value.

How do I claim the relief?

The way you claim the relief depends on what you do first - sell land or buy land.

If you sell land and afterwards buy land you can claim the relief on your Stamp Duty return for your purchase. You do this by selecting the relief from the list of reliefs on the 'Consideration' screen of the return. You must also enter the chargeable amount on the return.

If you buy land and afterwards sell land, you cannot claim the relief on the purchase. However, once you sell land, you can apply for a refund. For information on how to apply for a refund, see How do you claim a refund?.

Can the relief be clawed back?

Yes. The relief is clawed back if the land is disposed of within five years of the date the claim for relief was made.

Next: Transfers between spouses, civil partners or cohabitants