ICSA president Patrick Kent
The Government has reversed the Stamp Duty issue and ICSA president Patrick Kent has welcomed the move.
It means that family farm transactions will now be exempt from the 6% stamp duty rate announced in Budget 2018.
“ICSA understands that the upper age limit of 67 for consanguinity relief will be abolished so that land can be transferred within families at a 1% rate.,” added Mr Kent.
“This will be included in the Finance Bill.”
The president went on to say that the organisation had been demanding a reversal on the issue since Budget day.
“It is clear that the Government still doesn't get it when it comes to the damage done by the trebling of stamp duty to 6%.,” added Mr Kent, before pointing out that the stamp duty rate of 6% would still apply to land purchase.
“This is a savage assault on the people who get up early in the morning."
He continued, “ICSA believes this tax is an own-goal as it will likely reduce the overall take of money because people will be deterred from getting up early, working hard and looking to finance farm consolidation projects.
“It is also clear that it will undermine the ability of farmers who want to expand their holding to spend money on improving newly bought land because additional money will have to be borrowed to fund the stamp duty thus reducing what is available to reclaim or upgrade land. In the short term this will reduce employment and enterprise in rural areas, in the medium term it will slow down productivity growth on newly bought farmland.”
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