The government has agreed to significantly reduce major Stamp Duty rises on new tenancies.
Following two years of lobbying by the NFU, Stamp Duty will now be fixed at one per cent on new tenancies valued at £150,000 or more. The rental period used to calculate the value of the lease will also be capped at 10 years.
It is believed that the Treasury intended to apply a four per cent levy on the value of farm leases of £60,000 or above.
NFU vice president Michael Paske said: “We are extremely pleased that the Treasury has accepted our argument that Stamp Duty represents a significant financial barrier to newcomers looking to enter the industry. Its original proposals would have moved tenancies further out of reach.”
