Just a short note on consanguinity relief. This is the stamp duty relief for farmers where the stamp duty rate is 1% from the usual commercial rate of 7.5%. While the classic situation of consanguinity relief is in cases where a father is passing a farm to a son, it should be noted that it has wider application.

The relief applies to a broad range of relations, as follows

• Lineal descendent (child, step-child, grandchild etc.)
• Parent, step-parent and grandparent
• Husband, wife and civil partners
• Brother, sister, step-brother and step-sister
• Aunt and uncle
• Nephew and niece

Not only that, while much of Revenue guidance refers that it relates to transfers, it also relates to sales and purchases. So the relief would also apply for example by a purchase of a farm by one brother from another or a transfer between them.

The other conditions of the relief must also be met. The person who obtains the farm must

• hold a specified qualification or obtain one within a period of four years from the date that person gets the land; or
• spend at least 50% of their time farming land (including the land purchased/transferred).

If the person buying the farm (or transferee) does not meet these criteria, then, it is possible for that buyer/transferee, to lease out the farm as long as the person that the buyer/transferee leases to a person who either:

• holds a specified qualification or obtains one within a period of four years from the date he/she got the land; or
• spends at least 50% of their time farming land (including the land the subject of the purchase/transfer)

So, for example, Joe likes farming but also likes to have money in the bank. He owns his farm but it provides a limited income. His brother Sean, has made his fortune from city life. He would like an investment and trusts Joe. Sean buys Joe’s farm and then leases the farm back to Joe. Consanguinity relief applies.

Hope this helps and if you have any queries related to probate, capacity law or will drafting please reach out to ckelly@hcalaw.ie