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81B Farm consolidation relief.

(1)(a) In this section—

“consolidation certificate”, in relation to an exchange of relevant land, means a certificate, issued for the purposes of this section by Teagasc to each farmer concerned in the exchange of relevant land, which identifies the lands concerned and the owners of such lands, and certifies that Teagasc is satisfied, on the basis of information available to Teagasc at the time of so certifying, that the exchange of relevant land complies, or will comply, with the conditions of consolidation set down in guidelines;

“exchange of relevant land” means an exchange under which an interest in relevant land is conveyed or transferred by a farmer to another farmer in exchange for receiving, by way of conveyance or transfer, an interest in relevant land from that other farmer; and includes an exchange where the relevant land is conveyed or transferred by or to joint owners where not all the joint owners are farmers;

“farmer” means a person who spends not less than 50 per cent of that person’s normal working time farming;

“farming” includes the occupation of woodlands on a commercial basis;

“guidelines” and “conditions of consolidation” have, respectively, the meaning assigned to them by paragraph (b)(i);

“interest in relevant land” means an interest which is not subject to any power (whether or not contained in the instrument or, as the case may be, instruments) on the exercise of which the relevant land, or any part of or any interest in the relevant land, may be revested in the person from whom it was conveyed or transferred or in any person on behalf of such person;

“PPS number” means a personal public service number within the meaning of section 223 (as amended by section 12(1)(a) of the Social Welfare (Miscellaneous Provisions) Act 2002 (No. 8 of 2002)) of the Social Welfare (Consolidation) Act 1993;

“relevant land” means agricultural land, including lands suitable for occupation as woodlands on a commercial basis, in the State and such farm buildings together with the lands occupied with such farm buildings as are of a character appropriate to the relevant land but not including farm houses or mansion houses or the lands occupied with such farm houses and mansion houses unless such farm houses or mansion houses are derelict and unfit for human habitation;

“valid consolidation certificate”, on any day, means a consolidation certificate which, as at that day, has not been withdrawn and which was issued within the period of one year ending on that day.

(b) For the purposes of this section—

(i) the Minister for Agriculture and Food with the consent of the Minister for Finance may make and publish guidelines, from time to time, setting out—

(I) how an application for a consolidation certificate, in relation to an exchange of relevant land, is to be made,

(II) the documentation required to accompany such an application,

(III) the conditions of consolidation, and

(IV) such other information as may be required in relation to such application,

(ii) where an application is made in that regard, Teagasc shall issue a consolidation certificate in respect of an exchange of relevant land where they are satisfied, on the basis of information available to Teagasc at that time, that an exchange of relevant land complies, or will comply, with the conditions of consolidation, and

(iii) Teagasc may, by notice in writing, withdraw any consolidation certificate already issued.

(2) This section applies to any instrument effecting an exchange of relevant land where—

(a) the instrument contains a certificate that this section applies,

(b) a consolidation certificate, in relation to the exchange of relevant land, which is a valid consolidation certificate on the date of execution of the instrument, is furnished to the Commissioners when the instrument is presented for stamping,

(c) a declaration of a kind referred to in subsection (3), is furnished to the Commissioners by each farmer who is a party to the instrument, when the instrument is presented for stamping,

(d) a declaration made in writing by each person, who is a party to the instrument, is furnished to the Commissioners, in such form as the Commissioners may specify, when the instrument is presented for stamping, declaring that it is the intention of each such person—

(i) to retain ownership of his or her interest in the relevant land conveyed or transferred to that person by such instrument, and

(ii) that the relevant land will be used for farming,

for a period of not less than 5 years from the date of execution of the instrument, and

(e) the PPS number of each person who is a party to the instrument is furnished to the Commissioners when the instrument is presented for stamping.

(3) The declaration referred to in subsection (2)(c) is a declaration made in writing by a farmer, in such form as the Commissioners may specify, which—

(a) is signed by the farmer, and

(b) declares that—

(i) the farmer will remain a farmer, and

(ii) the farmer will farm the relevant land, conveyed or transferred to the farmer by the instrument,

for a period of not less than 5 years from the date of execution of the instrument.

(4) Notwithstanding section 37—

(a) stamp duty shall not be chargeable on an instrument giving effect to an exchange of relevant land, to which this section applies, where the relevant lands exchanged are of equal value, and

(b) where the relevant lands exchanged are not of equal value, subject to subsection (5), stamp duty shall only be chargeable on the principal or only instrument giving effect to the exchange of relevant land as if it were a conveyance or transfer on sale of the relevant land which is of the greater value which was made—

(i) in consideration of a sum equal to the difference between the value of the relevant lands exchanged,

(ii) to the person or persons to whom the relevant land which is of the greater value is conveyed or transferred.

(5) Where relevant lands exchanged are not of equal value, the consideration paid or agreed to be paid for equality shall consist only of a payment in cash.

(6) Where subsection (4)(b) applies and there are several instruments for completing a title to relevant land the subject of an exchange of relevant land to which this section applies, the principal instrument is to be ascertained and the other instruments shall not be chargeable to stamp duty.

(7) Subsection (4) shall not apply to an instrument unless it has, in accordance with section 20, been stamped with a particular stamp denoting that it is duly stamped or, as the case may be, that it is not chargeable with any duty.

(8) For the purposes of subsection (7), where there are several instruments for completing a title to relevant land, the subject of an exchange of relevant land to which this section applies, all instruments shall, for the purposes of section 20, be presented to the Commissioners, at the same time.

(9) (a) Subject to paragraph (b), where any person to whom relevant land was conveyed or transferred by any instrument in respect of which relief from duty under this section was allowed, disposes of such relevant land, or part of such relevant land, within a period of 5 years from the date of execution of the instrument, then such person or, where there is more than one such person, each such person, jointly and severally, shall become liable to pay to the Commissioners ^[2]>a penalty of an amount^<[2][2]>an amount (in this section referred to as a “clawback”)^<[2] equal to the amount of the difference between—

(i) the duty that would have been charged by virtue of section 37 on the value of such relevant land (being all the relevant land, the subject of the exchange of relevant land, conveyed or transferred to that person), if such relevant land had been conveyed or transferred to that person or, where there is more than one such person, each such person, by an instrument to which this section had not applied, and

(ii) the duty, if any, which was charged by virtue of this section on the conveyance or transfer of such relevant land,

together with interest charged on that amount, calculated in accordance with section section 159D, from the date of disposal of the relevant land or, as the case may be, a part thereof, to the date the ^[2]>penalty^<[2][2]>clawback^<[2] is remitted.

(b) Paragraph (a) shall not apply to a disposal of relevant land—

(i) which is being compulsorily acquired, or

(ii) which is a disposal of relevant land under an exchange of relevant land effected by an instrument to which subsection (2) applies.

(c) Where any claim for relief from duty under this section has been allowed and it is subsequently found that a declaration referred to in paragraph (c) or (d) of subsection (2)—

(i) was untrue in any material particular which would have resulted in the relief afforded by this section not being granted, and

(ii) was made knowing same to be untrue or in reckless disregard as to whether it was true or not,

then the person or persons who made such a declaration, jointly and severally, shall become liable to pay to the Commissioners a penalty of an amount equal to the amount of the difference between—

(I) 125 per cent of the duty which would have been charged on the instrument or, as the case may be, the instruments, effecting the exchange of relevant land by virtue of section 37 on the value of such relevant land conveyed or transferred to such person or persons, had all the facts been truthfully declared, and

(II) the amount of duty which was charged, if any,

together with interest charged on that amount, calculated in accordance with section 159D, from the date when the instrument was executed to the date the penalty is remitted.

(d) Where a consolidation certificate, purporting to be valid on the date of execution of an instrument effecting an exchange of relevant land, is furnished to the Commissioners when the instrument is presented for stamping and subsection (2) applied to the instrument and it subsequently transpires that the consolidation certificate was not a valid consolidation certificate on that date, the parties to the instrument, jointly and severally, shall become liable to pay to the Commissioners a penalty of an amount equal to the amount of the difference between—

(i) 125 per cent of the duty which would have been charged on the instrument or, as the case may be, the instruments, effecting the exchange of relevant land by virtue of section 37 on the value of such relevant land conveyed or transferred to such person or persons, had subsection (2) not applied to the instrument, and

(ii) the amount of duty which was charged, if any,

together with interest charged on that amount, calculated in accordance with section 159D, from the date when the instrument was executed to the date the penalty is remitted.

(10) Notwithstanding subsection (9)—

(a) where relief under this section was allowed in respect of any instrument, a disposal by a farmer or other joint owner of part of the relevant land to a spouse for the purpose of creating a joint tenancy in the relevant land, or where the instrument conveyed or transferred the relevant land to joint owners, a disposal by one joint owner, to another joint owner (being a farmer) of any part of the relevant land, shall not be regarded as a disposal to which subsection (9) applies, but on such disposal, such part of the relevant land shall be treated for the purposes of subsection (9) as if it had been conveyed or transferred immediately to the spouse or other joint owner by the instrument in respect of which relief from duty under this section was allowed,

(b) a person shall not be liable, in respect of the same matter, to more than one ^[3]>penalty under paragraph (a), (c) or (d)^<[3][3]>clawback or penalty under paragraph (a), (c) or (d), as the case may be,^<[3] of subsection (9),

(c) a person shall not be liable, in respect of the same matter, to a ^[4]>penalty under paragraph (a)^<[4][4]>clawback under paragraph (a)^<[4] of subsection (9), if and to the extent that such person has paid a penalty under paragraph (c) or (d) of subsection (9),

(d) a person shall not be liable, in respect of the same matter, to a penalty under paragraph (c) of subsection (9), if and to the extent that such person has paid a ^[5]>penalty under paragraph (a) or (d)^<[5][5]>clawback or penalty under paragraph (a) or (d), as the case may be,^<[5] of subsection (9), and

(e) a person shall not be liable, in respect of the same matter, to a penalty under paragraph (d) of subsection (9), if and to the extent that such person has paid a ^[6]>penalty under paragraph (a) or (c)^<[6][6]>clawback or penalty under paragraph (a) or (c), as the case may be,^<[6] of subsection (9).

(11) This section shall not apply to any instrument effecting an exchange of relevant land where the party or, as the case may be, any of the parties to such instrument, is a company.

(12) This section shall apply as respects instruments executed on or after 1 July 2005 and on or before 30 June 2007.

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