U-turn ends stamp duty threat

GIFTS OF farmland into and out of family partnerships will not trigger stamp duty land tax following a government U-turn.

After intense lobbying by agricultural accountants and other interested parties, the Stamp Office has amended last year‘s draft legislation.

Carlton Collister, senior tax manager at accountant Grant Thornton, said the relaxation allowed a family partnership to continue to include farmland and buildings within the business.

This would maximise potential inheritance tax reliefs, without such assets being hit by stamp duty land tax when given to another family member.

“For example, a farm worker‘s cottage might be gifted to a daughter who does not work on the farm, for her to hold as an investment and possible home.

“Under the proposals, this would have been liable to stamp duty land tax – it will now remain exempt,” said Mr Collister.