Budget 2021 proposes to extend consanguinity relief, which provides for a reduced 1% rate of stamp duty on transfers of agricultural land between family members, for a further 3 years to December 2023.
The relief was due to expire at the end of this year.
In the Finance Act 2017, Minister for Finance Paschal Donohoe has introduced a relief which provides for a Stamp Duty rate of 1% to apply where the transaction concerned is part of a farm consolidation.
"The relief was introduced to encourage farmers to consolidate their holdings," Minister Donohoe said, "and increase the efficiency and viability of their farms. It is currently due to expire on December 31, this year, but I can confirm that it is to be extended by 2 years to end-2022. This will serve to align the next review date with its Capital Gains Tax equivalent. In addition, I am increasing the farmers' flat VAT rate addition from 5.4%r cent to 5.6% with effect from January 1.
The creation of a post of Food Ombudsman was among the agriculture spending measures announced by the Minister for Public Expenditure.
Michael McGrath said he was allocating an additional €1.8 billion to the Department, an increase of €179 million on last year's allocation.
He said funding would be allocated towards the implementation of the necessary controls for agri-food exports to, and imports from, Britain after the end of the Brexit transition period this year.
A range of new Agri-environmental pilot schemes would also be rolled out, the Minister said.
An additional €341 million would also be allocated to the Department of Rural and Community Development in 2021.
