Consanguinity relief is a stamp duty relief that applies to transfers of farmland where the transferee is the transferor's:
- lineal descendant,
- husband or wife,
- brother or sister of a parent,
- brother or sister,
- lineal descendant of a parent, husband or wife or brother or sister, or
- as respects the person or each of the persons immediately theretofore entitled, his or her civil partner, the civil partner of either of his or her parents or a lineal descendant of his or her civil partner.
This relief reduces the effective rate from 7.5% to 1%.
It expires on 31.12.2023.
The transferee must have a farming qualification, or spend more than half his time farming, and must continue to farm the land for five years after the transfer (or lease the land to another such farmer).
K is a farmer aged 38 and has a recognised qualification in farming.
K's uncle gifts him farm land worth €500,000.
K will continue to farm the land for five years after the transfer.
The stamp duty applicable to the transfer is €5,000 (1% x €500,000).
K does not qualify for young trained farmer relief as he is aged 38 - to obtain that relief the claimant must be aged under 35.
Written by Alan Moore
Founder and CEO of Tax World Ltd