Farm Consolidation Relief

Farm Consolidation Relief

The stated aim and purpose of Farm Consolidation Relief is to encourage the consolidation of farm holdings. This is done to reduce fragmentation and improve the operation and viability of farms.

Certain sales and transfer or exchanges of land that are carried out for consolidation purposes may be entitled to stamp duty relief. This relief applies under Section 81(b) of the Stamp Duty Consolidation Act 1999.

Full relief on Stamp Duty is available where parcels of land of equal value are exchanged and the qualifying criteria are met.  Stamp Duty at a reduced rate of 1% (usually rate is 7.5%) is applied to sales and purchase of land which qualify under the Act.

In order to qualify the following conditions must be satisfied.

  1. The land must be agricultural;
  2. The individuals involved must be farmers;
  3. Teagasc must issue a Consolidation Certificate certifying that the conditions for consolidation are satisfied;
  4. The Deed of Transfer must be executed before 31st December 2022.

Owners of lands who avail of this relief must retain the lands for a period of five years. If not retained for this period, a clawback will apply. This time is measured from the date in which the relief is claimed

For more information or for assistance in estate and property law please contact our office.