Stamp Duty – Finance Act 2007 – Farm Consolidation Relief

Section 81B of the Stamp Duties Consolidation Act 1999 contained a stamp duty relief for an exchange of farmland between two farmers for the purposes of consolidating each farmer's holding. The relief under section 81B expired on 30 June 2007.

Section 104 of the Finance Act 2007 provides for an expanded farm consolidation relief which will allow a farmer to claim relief from stamp duty where he or she sells lands and purchases lands in order to consolidate his or her holding, where both the sale and purchase occur within 18 months of each other. The new relief is contained in section 81C of the Stamp Duties Consolidation Act 1999 and the relief will apply for the period 1 July 2007 to 30 June 2009.

However, the relief is subject to a commencement order by the Minister for Finance and, in this regard, approval has been sought from the European Commission in relation to the introduction of the relief.

The relief under section 81C of the Stamp Duties Consolidation Act 1999 will only become operable from the date the commencement order in respect of section 104 of the Finance Act 2007 is signed by the Minister for Finance. In the meantime, instruments which come within the parameters of the relief are required to be stamped without the benefit of the relief. If and when the relief is commenced, the relief will apply, retrospectively, to instruments executed on or after 1 July 2007 and on or before 30 June 2009 where the conditions governing the relief have been satisfied. Where stamp duty has been paid in respect of any such instruments, a repayment of the stamp duty may be claimed from the Revenue Commissioners.

If and when the relief becomes operable, the Revenue Commissioners will publish details in relation to the new relief, including the conditions governing such relief and the manner in which claims for repayment of duty may be made.