Stamp Duty Consolidation Act, 1999 (Number 31 of 1999)
[1]>
81AA Transfers to young trained farmers.
(1) [29]>In this section and Schedule 2B<[29][29]>In this section<[29]—
[15]>
“EU Regulation” means Commission Regulation (EU) No. 702/2014 of 25 June 201416 declaring certain categories of aid in the agricultural and forestry sectors and in rural areas compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union as that Regulation may be revised from time to time;
<[15]
“interest in land” means an interest which is not subject to any power (whether or not contained in the instrument) on the exercise of which the land, or any part of or any interest in the land, may be revested in the person from whom it was conveyed or transferred or in any person on behalf of such person;
“land” means agricultural land and includes such farm buildings, farm houses and mansion houses (together with the lands occupied with such farm buildings, farm houses and mansion houses) as are of a character appropriate to the land;
“PPS Number”, in relation to a person, means the person”s Personal Public Service Number within the meaning of section 262 of the Social Welfare Consolidation Act 2005;
“Schedule 2 qualification” means a qualification set out in Schedule 2;
“Schedule 2A qualification” means a qualification set out in Schedule 2A;
[30]>
“Schedule 2B qualification” means a qualification set out in Schedule 2B;
<[30]
“young trained farmer” means a person in respect of whom it is shown to the satisfaction of the Commissioners that—
(a) the person had not attained the age of 35 years on the date on which the instrument, in respect of which relief is being claimed under this section, was executed, and
(b) the conditions referred to in subsection (2), (3), (4) or (5) are satisfied;
“80 hours certificate” means a certificate awarded by the Further Education and Training Awards Council for achieving the minimum stipulated standard in assessments completed in a course of training, approved by Teagasc, in farm management, the aggregate duration of which exceeded 80 hours;
“180 hours certificate” means a certificate awarded by the Further Education and Training Awards Council for achieving the minimum stipulated standard in assessments completed in a course of training approved by Teagasc—
(a) in either or both agriculture and horticulture, the aggregate duration of which exceeded 100 hours, and
(b) in farm management, the aggregate duration of which exceeded 80 hours.
(2) The condition required by this subsection is that the person, referred to in paragraph (a) of the definition of young trained farmer, is the holder of [31]>a Schedule 2B qualification<[31] [31]>a trained farmer qualification (within the meaning given by section 654A of the Taxes Consolidation Act 1997)<[31].
(3) The condition required by this subsection is that the person, referred to in paragraph (a) of the definition of young trained farmer, is the holder of a letter of confirmation from Teagasc, confirming satisfactory completion of a course of training, approved by Teagasc, for persons, who in the opinion of Teagasc, are restricted in their learning capacity due to physical, sensory or intellectual disability or to mental health.
(4) The conditions required by this subsection are that the person, referred to in paragraph (a) of the definition of young trained farmer, before 31 March 2008, is the holder of—
(a) (i) a qualification set out in subparagraph (f) of paragraph 1, or subparagraph (h) of paragraph 2, of Schedule 2A, and
(ii) a 180 hours certificate,
or
(b) (i) a qualification set out in subparagraph (b), (c) or (d) of paragraph 3 of Schedule 2A, and
(ii) an 80 hours certificate.
(5) The conditions required by this subsection are that the person, referred to in paragraph (a) of the definition of young trained farmer, before 31 March 2008—
(a) has achieved the required standard for entry into the third year of a full-time course in any discipline of 3 or more years” duration at a third-level institution, and that has been confirmed by the institution, and
(b) is the holder of a 180 hours certificate.
[32]>
(6) For the purposes of subsection (2), where Teagasc certifies that—
(a) any other qualification corresponds to a Schedule 2B qualification, and
(b) that other qualification is deemed by the [12]>National Qualifications Authority of Ireland<[12][12]>Qualifications and Quality Assurance Authority of Ireland<[12] to be at least at a level equivalent to that of the Schedule 2B qualification,
the Commissioners shall treat that other qualification as if it were a Schedule 2B qualification.
<[32]
(7) No stamp duty shall be chargeable under or by reference to the heading “CONVEYANCE or TRANSFER on sale of any property other than stocks or marketable securities or a policy of insurance or a policy of life insurance” in Schedule 1 on any instrument to which this section applies.
[16]>
(7A) The aggregate amount of relief granted to a person under this section and section 667B and section 667D of the Taxes Consolidation Act 1997 shall not exceed the limit of €70,000[27]>as provided for by Article 18 of the EU Regulation<[27].
<[16]
[8]>
(8) This section applies to any instrument which operates as a conveyance or transfer (whether on sale or as a voluntary disposition inter vivos) of an interest in land to a young trained farmer where—
(a) the instrument contains a certificate that this section applies,
(b) a declaration made in writing by the young trained farmer, or each of them if there is more than one, is furnished to the Commissioners when the instrument is presented for stamping, confirming, to the satisfaction of the Commissioners, that it is the intention of such person, or each such person, for a period of 5 years from the date of execution of the instrument to—
(i) spend not less than 50 per cent of that person”s normal working time, farming the land, and
(ii) retain ownership of the land,
and
(c) the PPS Number of the young trained farmer, or each of them if there is more than one, is furnished to the Commissioners when the instrument is presented for stamping.
<[8]
[8]>
[14]>
(8) This section applies to any instrument which operates as a conveyance or transfer (whether on sale or as a voluntary disposition inter vivos) of an interest in land to a young trained farmer where it is the intention of the young trained farmer, or each young trained farmer if there is more than one, for a period of 5 years from the date of execution of the instrument to—
(a) spend not less than 50 per cent of their normal working time farming the land, and
(b) retain ownership of the land.
<[14]
<[8]
[14]>
(8) This section applies to any instrument which operates as a conveyance or transfer (whether on sale or as a voluntary disposition inter vivos) of an interest in land to a young trained farmer where—
(a) it is the intention of the young trained farmer, for a period of 5 years from the date of execution of the instrument to—
(i) spend not less than 50 per cent of his or her normal working time farming the land, and
(ii) retain ownership of the land,
(b) the young trained farmer submits a business plan to Teagasc before the execution of the instrument concerned, and
[17]>
(c) the young trained farmer comes within the meaning of “micro, small and medium-sized enterprises” in Annex 1 of Commission Regulation (EU) No. 702/2014 of 25 June 201419.
<[17]
[17]>
(c) the young trained farmer comes within the meaning of microenterprise or small enterprise in Article 2 of Annex 1 to the EU Regulation.
<[17]
<[14]
(9) Notwithstanding subsection (8), this section shall apply where the property is conveyed or transferred into joint ownership where all the joint owners are young trained farmers or where any of the joint owners is a [7]>spouse<[7][7]>spouse or civil partner<[7] of another joint owner who is a young trained farmer.
[9]>
(10) Subsection (7) shall not apply to an instrument unless it has, in accordance with section 20, been stamped with a particular stamp denoting that it is not chargeable with any duty.
<[9]
[33]>
(11) (a) For the purposes of this subsection, a person “achieves the standard” at any time where at that time the person—
(i) satisfies the conditions set out in subsection (2), (3), (4) or (5), or
(ii) is the holder of a qualification treated, by virtue of subsection (6), as being a Schedule 2B qualification,
and whether a person has or has not achieved the standard shall be construed accordingly.
<[33]
[33]>
(11) (a) For the purposes of this subsection, a person ‘achieves the standard’ at any time where at that time the person satisfies the conditions set out in subsection (2), (3), (4) or (5) and whether a person has or has not achieved the standard shall be construed accordingly.
<[33]
(b) This subsection applies to an instrument by means of which land is conveyed or transferred to a person (in this subsection referred to as the “transferee”) who on the date the instrument was executed was not a young trained farmer by reason only of the fact that the transferee on that date had not achieved the standard.
[10]>
(c) Where within 4 years from the date of execution of an instrument to which this subsection applies, the transferee achieves the standard, the Commissioners shall, where a claim for repayment is made to them by the production to them of—
(i) the stamped instrument,
(ii) a declaration in writing by the transferee making a claim for repayment, or each of them if there is more than one, confirming, to the satisfaction of the Commissioners, that it is the intention of such person, or each such person, for a period of not less than 5 years from the date on which the claim for repayment is made to the Commissioners to—
(I) spend not less than 50 per cent of that person”s normal working time, farming the land, and
(II) retain ownership of the land,
(iii) the PPS Number of the transferee making a claim for repayment, or each of them if there is more than one, and
(iv) satisfactory evidence of compliance with this subsection,
cancel and repay such duty as would not have been chargeable had this section applied to the instrument when it was first presented for stamping.
<[10]
[18]>
[10]>
(c) Where within 4 years from the date of execution of an instrument to which this subsection applies, the transferee achieves the standard, the Commissioners shall, where a claim for repayment is made to them by the transferee, or each of them if there is more than one, and where it is the intention of such person, or each such person, for a period of 5 years from the date on which the claim for repayment is made to the Commissioners to—
(i) spend not less than 50 per cent of that person’s normal working time, farming the land, and
(ii) retain ownership of the land,
cancel and repay such duty as would have been chargeable had this section applied to the instrument when it was first presented for stamping.
<[10]
<[18]
[18]>
(c) This paragraph applies where—
(i) the transferee achieves the standard within the period of 4 years from the date of execution of an instrument to which this subsection applies,
(ii) it is the intention of the transferee, for a period of 5 years from the date on which a claim for repayment under paragraph (d) is made to the Commissioners to—
(I) spend not less than 50 per cent of his or her normal working time farming the land concerned, and
(II) retain ownership of that land,
and
(iii) the transferee—
(I) submits a business plan to Teagasc, and
(II) comes within the meaning of microenterprise or small enterprise in Article 2 of Annex 1 to the EU Regulation,
before a repayment under paragraph (d) is claimed.
<[18]
[19]>
(d) Where paragraph (c) applies, the transferee may claim a repayment of stamp duty paid in respect of the instrument concerned and the Commissioners shall then cancel and repay any duty that was paid in respect of that instrument.
<[19]
(12) (a) Where any person to whom land was conveyed or transferred by any instrument to which subsection (7) or subsection (11) applied—
(i) disposes of such land, or part of such land (in this subsection referred to as a “part disposal”), within a period of 5 years—
(I) in a case where subsection (7) applied, from the date of execution of that instrument, or
(II) in a case where subsection (11) applied, from the date the claim for repayment is made to the Commissioners,
and
(ii) does not fully expend the proceeds from such disposal or, as the case may be, such part disposal, in acquiring other land within a period of one year from the date of such disposal,
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 [3]>a penalty<[3][3]>an amount (in this section referred to as a “clawback”)<[3] equal to an amount determined by the formula—
S |
× |
N |
|
V |
where—
S is the amount of stamp duty that would have been charged on that instrument had subsection (7) not applied or, as the case may be, the amount of stamp duty that was charged on the instrument in the first instance and later repaid under subsection (11)(c),
V is the market value, immediately before the disposal or, as the case may be, the part disposal, of all the land conveyed or transferred by the instrument, and
N is the amount of proceeds from the disposal or, as the case may be, the part disposal, that was not expended in acquiring other land.
(b) Interest shall be payable on a [4]>penalty<[4][4]>clawback<[4] incurred under paragraph (a), calculated in accordance with section 159D, from the date of the disposal or, as the case may be, the part disposal, to the date the [4]>penalty<[4][4]>clawback<[4] is remitted.
(c) For the purposes of paragraph (a)—
(i) where a disposal of land is effected in whole or in part by way of a voluntary disposition inter vivos, an amount equal to the market value of the lands disposed of, at the date of the disposal, shall be deemed to be the proceeds from such disposal,
(ii) where any property is received by way of exchange, in whole or in part for a disposal, an amount equal to the market value of such property, at the date of the disposal, shall be deemed to be proceeds from such disposal, and
(iii) where subparagraph (ii) applies and property received by way of exchange is land or includes land, an amount equal to the market value of such land at the date of the disposal shall be deemed to have been expended in acquiring other land.
(d) A person shall not be liable to a [5]>penalty<[5][5]>clawback<[5] under paragraph (a), if and to the extent that any [5]>penalty<[5][5]>clawback<[5] or, as the case may be, the aggregate of any [5]>penalties<[5][5]>clawbacks<[5], paid by that person under paragraph (a), exceeds the stamp duty that would have been charged on the instrument had relief under subsection (7) not applied or, as the case may be, the stamp duty that was charged on the instrument in the first instance and later repaid under subsection (11)(c).
[20]>
(e) Where any claim for relief from duty under this section has been allowed and it is subsequently found that a declaration made, or a certificate contained in the instrument, in accordance with subsection (8)—
(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, or was included, knowing same to be untrue or in reckless disregard as to whether it was true or not,
then any person who made such a declaration, or where a false certificate has been included, the person or persons to whom the land is conveyed or transferred by the instrument, jointly and severally, shall be liable to pay to the Commissioners as a penalty an amount equal to 125 per cent of the duty that would have been charged on the instrument in the first instance had all the facts been truthfully declared and certified, together with interest charged on that amount as may so become payable, calculated in accordance with section 159D, from the date when the instrument was executed to the date the penalty is remitted.
<[20]
[21]>
(f) Where any claim for relief from duty under this section has been allowed and it is subsequently found that a declaration made in accordance with subsection (11)(c)(ii)—
(i) was untrue in any material particular which would have resulted in the repayment of duty under subsection (11)(c) not being made, and
(ii) was made knowing same to be untrue or in reckless disregard as to whether it was true or not,
then any person who made such a declaration shall be liable to pay to the Commissioners, as a penalty, an amount equal to 125 per cent of the duty that was charged on the instrument in the first instance, together with interest charged on that amount calculated in accordance with section 159D, from the date the claim for repayment was made to the Commissioners to the date the penalty is remitted.
<[21]
(13) Notwithstanding subsection (12)—
(a) where relief under subsection (7) was allowed in respect of any instrument or where subsection (11) applied to any instrument, a disposal by a young trained farmer of part of the land to a [7]>spouse<[7][7]>spouse or civil partner<[7] for the purpose of creating a joint tenancy in the land, or where the instrument conveyed or transferred the land to joint owners, a disposal by one joint owner to another of any part of the land, shall not be regarded as a disposal to which subsection (12) applies, but on such disposal, such part of the land shall be treated for the purposes of subsection (12)—
(i) in a case where subsection (7) applied, as if it had been conveyed or transferred immediately to the [7]>spouse<[7][7]>spouse or civil partner<[7] or other joint owner by the instrument in respect of which relief was allowed in the first instance, or
(ii) in a case where subsection (11) applied, as if it had been conveyed or transferred to the [7]>spouse<[7][7]>spouse or civil partner<[7] or other joint owner by the instrument to which subsection (11) applied, but at the date the claim for repayment is made to the Commissioners,
[22]>
(b) a person shall not be liable to more than one penalty under paragraph (e) of subsection (12),
<[22]
[23]>
(c) a person shall not be liable to a [6]>penalty under paragraph (a)<[6][6]>an amount (in this section referred to as a “clawback”)<[6] of subsection (12), if and to the extent that such person has paid a penalty under paragraph (e) or (f) of subsection (12), and
<[23]
[24]>
(d) a person shall not be liable to a penalty under paragraph (e) or (f) of subsection (12), if and to the extent that such person has paid a [6]>penalty under paragraph (a)<[6][6]>an amount (in this section referred to as a “clawback”)<[6] of subsection (12).
<[24]
(14) A person who, before the date of the passing of the Finance Act 2004—
(a) is the holder of a Schedule 2 qualification or a qualification certified by Teagasc as corresponding to a Schedule 2 qualification and a satisfactory attendance at a course of training, approved by Teagasc, (in farm management, the aggregate duration of which exceeded 80 hours) is required for the purposes of section 81, shall be deemed, for the purposes of this section, to be the holder of a qualification corresponding to one of the qualifications set out in subsection (4)(b)(i),
(b) is the holder of a Schedule 2 qualification or a qualification certified by Teagasc as corresponding to a Schedule 2 qualification and a satisfactory attendance at a course of training, approved by Teagasc, is not required for the purposes of section 81, shall be deemed, for the purposes of this section, [34]>to be the holder of a qualification corresponding to that set out in subparagraph (b) of paragraph 1 of Schedule 2B<[34] [34]>to be the holder of a qualification corresponding to that set out in subparagraph (b) of paragraph 1 of the Table to section 654A of the Taxes Consolidation Act 1997<[34],
(c) satisfies the requirements set out in paragraph (b)(ii)(I) of the definition of young trained farmer in section 81(1), shall be deemed, for the purposes of this section, to have satisfied the conditions set out in subsection (5)(a),
(d) is, for the purposes of section 81, the holder of a certificate issued by Teagasc certifying satisfactory attendance at a course of training, approved by Teagasc, in farm management, the aggregate duration of which exceeded 80 hours, shall be deemed, for the purposes of this section, to be the holder of an 80 hours certificate, or
(e) is, for the purposes of section 81, the holder of a certificate issued by Teagasc certifying satisfactory attendance at a course of training, approved by Teagasc, in either or both agriculture and horticulture, the aggregate duration of which exceeded 180 hours, shall be deemed, for the purposes of this section, to be the holder of a 180 hours certificate.
(15) A person who, before the date of the passing of the Finance Act 2007, is the holder of a Schedule 2A qualification or a qualification certified by Teagasc as corresponding to a Schedule 2A qualification, and is not required, for the purposes of section 81A, to be the holder of an 80 hours certificate or a 180 hours certificate, shall be deemed, for the purposes of this section, [35]>to be the holder of a qualification corresponding to that set out in subparagraph (b) of paragraph 1 of Schedule 2B<[35] [35]>to be the holder of a qualification corresponding to that set out in subparagraph (b) of paragraph 1 of the Table to section 654A of the Taxes Consolidation Act 1997<[35].
(16) This section applies as respects instruments executed on or after the date of the passing of the Finance Act 2007 and on or before [2]>31 December 2008<[2][11]>[2]>31 December 2012<[2]<[11][13]>[11]>31 December 2015<[11]<[13][25]>[13]>31 December 2018<[13]<[25][26]>[25]>31 December 2021<[25]<[26][28]>[26]>31 December 2022<[26]<[28] [28]>30 June 2023<[28].
<[1]
16 OJ No. L193, 1.7.2014, p. 1
[1]
Inserted by FA07 s103(a). Deemed to have come into operation in relation to stamp duty, as respects an instrument executed on or after 1 January 2011
[3]
Substituted by F(No.2)A08 sched5(part5)(chap2)(7)(i)(i)(I). Note F(No.2)A08 sched5 (part5)(chap 2)(7). As respects paragraph 7 of this Schedule subparagraphs (a) to (aa) (other than subparagraph (c)(i)(I)) of that paragraph have effect as on and from the passing of this Act and to the extent that Chapter 3A (being inserted into Part 47 of the Taxes Consolidation Act 1997 by Part 1 of this Schedule) applies to penalties incurred under the Stamp Duties Consolidation Act 1999 before the passing of this Act which on the passing of this Act have not been paid, it shall not apply to such penalties which are in the form of interest accrued under any provisions of the said Act.
[4]
Substituted by F(No.2)A08 sched5(part5)(chap2)(7)(i)(i)(II). Note F(No.2)A08 sched5 (part5)(chap 2)(7). As respects paragraph 7 of this Schedule subparagraphs (a) to (aa) (other than subparagraph (c)(i)(I)) of that paragraph have effect as on and from the passing of this Act and to the extent that Chapter 3A (being inserted into Part 47 of the Taxes Consolidation Act 1997 by Part 1 of this Schedule) applies to penalties incurred under the Stamp Duties Consolidation Act 1999 before the passing of this Act which on the passing of this Act have not been paid, it shall not apply to such penalties which are in the form of interest accrued under any provisions of the said Act.
[5]
Substituted by F(No.2)A08 sched5(part5)(chap2)(7)(i)(i)(III). Note F(No.2)A08 sched5 (part5)(chap 2)(7). As respects paragraph 7 of this Schedule subparagraphs (a) to (aa) (other than subparagraph (c)(i)(I)) of that paragraph have effect as on and from the passing of this Act and to the extent that Chapter 3A (being inserted into Part 47 of the Taxes Consolidation Act 1997 by Part 1 of this Schedule) applies to penalties incurred under the Stamp Duties Consolidation Act 1999 before the passing of this Act which on the passing of this Act have not been paid, it shall not apply to such penalties which are in the form of interest accrued under any provisions of the said Act.
[6]
Substituted by F(No.2)A08 sched5(part5)(chap2)(7)(i)(ii). Note F(No.2)A08 sched5 (part5)(chap 2)(7). As respects paragraph 7 of this Schedule subparagraphs (a) to (aa) (other than subparagraph (c)(i)(I)) of that paragraph have effect as on and from the passing of this Act and to the extent that Chapter 3A (being inserted into Part 47 of the Taxes Consolidation Act 1997 by Part 1 of this Schedule) applies to penalties incurred under the Stamp Duties Consolidation Act 1999 before the passing of this Act which on the passing of this Act have not been paid, it shall not apply to such penalties which are in the form of interest accrued under any provisions of the said Act.
[7]
[-] [+] [-] [+] [-] [+] [-] [+]
Substituted by F(No.3)A11 sched2(3). Deemed to have come into operation in relation to stamp duty, as respects an instrument executed on or after 1 January 2011
[8]
Substituted by FA12 sched3(23)(a). In effect for all instruments that are executed on or after 7 July 2012 per S.I. No. 228 of 2012.
[9]
Deleted by FA12 sched3(23)(b). In effect for all instruments that are executed on or after 7 July 2012 per S.I. No. 228 of 2012.
[10]
Substituted by FA12 sched3(23)(c). Has effect as respects instruments first executed on or after such date as the Minister by order specifies and, accordingly, the provisions of the Principal Act, as they applied to instruments first executed before that date, continue to apply to instruments first executed before that date.
[12]
Substituted by F(No.2)A13 s69(1)(a). Has effect in respect of certifications made by Teagasc on or after 6 November 2012.
[25]
Substituted by FA18 s48(1)(a)(vii). Comes into operation on 1 January 2019 per S.I. 599/2019.
[27]
Deleted by FA22 s73(1)(a)(i). Comes into operation on such day or days as the Minister for Finance may appoint by order.
[28]
Substituted by FA22 s73(1)(a)(ii). Comes into operation on such day or days as the Minister for Finance may appoint by order.