Finance Act 2024
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Farming reliefs | ||
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92. The Principal Act is amended— | ||
(a) in section 81AA— | ||
(i) in subsection (1), by the insertion of the following definitions: | ||
“ ‘ordinary share capital’, in relation to a company, means all the issued share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate, but have no other right to share in the profits of the company; | ||
‘relevant period’, in relation to an instrument, means a period of 5 years— | ||
(a) in a case where subsection (7) applied to the instrument, commencing on the date of execution of that instrument, or | ||
(b) in a case where subsection (11) applied to the instrument, commencing on the date the claim for repayment is made to the Commissioners;”, | ||
(ii) in subsection (12)(a), by the substitution of the following subparagraph for subparagraph (i): | ||
“(i) disposes of such land, or part of such land (in this subsection referred to as a ‘part disposal’), within the relevant period, and”, | ||
and | ||
(iii) by the insertion of the following subsections after subsection (13): | ||
“(13A) Where any person to whom land was conveyed or transferred by any instrument to which subsection (7) or (11) applied fails to spend not less than 50 per cent of his or her normal working time farming the land concerned during the relevant period 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— | ||
(a) the amount of the 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), and | ||
(b) interest calculated in accordance with section 159D from the date when the failure occurs to the date when the duty is remitted. | ||
(13B) For the purposes of subsection (13A), where, for any part of the relevant period, the land concerned is leased to a company and the person referred to in that subsection— | ||
(a) spends not less than 50 per cent of his or her normal working time farming the land as an employee of the company, | ||
(b) holds not less than 20 per cent of the ordinary share capital of the company, | ||
(c) is a director of the company, and | ||
(d) has the ability to participate in the financial and operational decisions of the company, | ||
the person shall, for that part of the relevant period, be treated as having spent not less than 50 per cent of his or her normal working time farming the land.”, | ||
and | ||
(b) in section 81D— | ||
(i) by the substitution of the following subsection for subsection (1): | ||
“(1) In this section— | ||
‘Commission Regulation (EU) No. 1408/2013’ means Commission Regulation (EU) No. 1408/2013 of 18 December 201332 as amended by Commission Regulation (EU) 2019/316 of 21 February 201933 and Commission Regulation (EU) 2022/2046 of 25 October 202234 ; | ||
‘farming’ includes the occupation of woodlands on a commercial basis; | ||
‘ordinary share capital’, in relation to a company, means all the issued share capital (by whatever name called) of the company, other than capital the holders of which have a right to a dividend at a fixed rate, but have no other right to share in the profits of the company.”, | ||
(ii) by the substitution of the following subsection for subsection (4): | ||
“(4) For the purposes of this section, the lessee shall, from the date on which the lease is executed, be— | ||
(a) an individual who— | ||
(i) is the holder of or, within a period of 4 years from the date of the lease, will be the holder of, a trained farmer qualification (within the meaning given by section 654A of the Taxes Consolidation Act 1997 ) or a qualification set out in Schedule 2 or 2A, or | ||
(ii) spends not less than 50 per cent of his or her normal working time farming land (including the leased land), | ||
or | ||
(b) a company, in respect of which at least one individual is an individual— | ||
(i) who holds not less than 20 per cent of the ordinary share capital of the company, | ||
(ii) who is a director of the company, | ||
(iii) who has the ability to participate in the financial and operational decisions of the company, and | ||
(iv) who— | ||
(I) is the holder of or, within a period of 4 years from the date of the lease, will be the holder of, a trained farmer qualification (within the meaning given by section 654A of the Taxes Consolidation Act 1997 ) or a qualification set out in Schedule 2 or 2A, or | ||
(II) spends not less than 50 per cent of his or her normal working time farming land (including, as an employee of the company, the leased land).”, | ||
(iii) in subsection (6), by the substitution of “the individual referred to in paragraph (a) or (b), as the case may be, of subsection (4), or the permanent incapacity of that individual” for “the lessee or the permanent incapacity of the lessee”, and | ||
(iv) by the insertion of the following subsection after subsection (6): | ||
“(7) Relief under this section shall be available to a single undertaking within the meaning of Commission Regulation (EU) No. 1408/2013 only insofar as it does not exceed the ceiling of aid laid down in that Commission Regulation.”. | ||
32 OJ No. L352, 24.12.2013, p.9 |