-BUT GOVERNMENT STILL DOESN’T UNDERSTAND DAMAGE DONE TO PRODUCTIVE FARMING
18 OCTOBER 2017
ICSA president Patrick Kent has welcomed news the cabinet has approved a request from Finance Minister Paschal Donohoe to exempt family farm transactions from the 6% stamp duty rate announced in Budget 2018. ICSA understands that the upper age limit of 67 for consanguinity relief will be abolished so that land can be transferred within families at a 1% rate. This will be included in the Finance Bill.
“ICSA has been demanding a reversal on this issue since budget day. However, it is clear that the Government still doesn’t get it when it comes to the damage done by the trebling of stamp duty to 6%. The stamp duty rate of 6% will still apply to land purchase. This is a savage assault on the people who get up early in the morning.”
“Previous government policy was supposed to support the consolidation of fragmented farm holdings. ICSA believes this tax is an own-goal as it will likely reduce the overall take of money because people will be deterred from getting up early, working hard and looking to finance farm consolidation projects. It is also clear that it will undermine the ability of farmers who want to expand their holding to spend money on improving newly bought land because additional money will have to be borrowed to fund the stamp duty thus reducing what is available to reclaim or upgrade land. In the short term this will reduce employment and enterprise in rural areas, in the medium term it will slow down productivity growth on newly bought farmland.”