Tax rates/reliefs/schemes

jack77

Depending on how much land is involved you could get some or all transferred as a "Gift" especially when its a parent gifting a child, can't remember off hand how much is the exemption, but worth having a quick look on the revenue site

Joe the Plumber

JohnBoy wrote: »

"Creative use of stock relief"

The farmers handbook 2010 has a short section on stock relief which isnt very clear, and one of the paragraphs is titled as above.


Would anyone care to explain what creative uses can be made of stock relief, especially the 4 years of 100% relief available to qualified young farmers.

I was told once upon a time that you could basically spend all your income on cattle on new years eve, and sell them again on new years day and avoid paying any tax.





You could repeat this process each year for 4 years.


Is there any truth to this? how does stock relief actually work?

Not sure about this 4 year idea, think it may be gone.

follow link below, this is the most up to date info.



http://www.grantthornton.ie/MediaandEvents/Stock-relief-is-good-option

KCTK

Joe the Plumber wrote: »

Not sure about this 4 year idea, think it may be gone.

follow link below, this is the most up to date info.



http://www.grantthornton.ie/MediaandEvents/Stock-relief-is-good-option

Still in place but all could change after December budget, but definately still 100% stock relief available for young farmers for first 4 years at the moment...

KCTK

jack77 wrote: »

Depending on how much land is involved you could get some or all transferred as a "Gift" especially when its a parent gifting a child, can't remember off hand how much is the exemption, but worth having a quick look on the revenue site

Hi Guys, if anyone is thinking of getting some land transferred a read of the link below will be a great help. It outlines how you avail of Agricultural Relief on transfers, if you qualify the taxable value of the transfer is reduced by 90%.
http://www.revenue.ie/en/tax/cat/leaflets/cat5.html

Also if you do not qualify for Ag relief there is another relief which is similar called Business Property relief which you should qualify for once it is a working farm that is being transfered.
http://www.revenue.ie/en/tax/cat/leaflets/cat4.html

This link outlines what you need to qualify for stamp duty relief on a transfer
http://www.revenue.ie/en/tax/stamp-duty/certificates/young-trained-farmers.html

Remember also if you do not qualify for the young farmer relief you can avail of "Consanguinity relief" if the transfer is from certain relatives, this reduces your stamp duty amount by half.

Consanguinity relief

This relief applies to transfers of non-residential property to certain relatives, e.g. parent, grandparent, step-parent, child, foster-child, adopted child, brother, sister, half-brother/sister, aunt, uncle, niece, nephew. Duty is charged at half the normal rate. This relief does not apply to leases or transfers of shares. Finance Act 2011 confirmed that consanguinity relief would no longer apply to transfers of residential property with effect from 8 December 2010.


Again hopefully the Budget in December '11 does not change these!!

trg

KCTK wrote: »

Still in place but all could change after December budget, but definately still 100% stock relief available for young farmers for first 4 years at the moment...

Hi, this states that the relief must be claimed in writing. Does this involve accompanying the form 11 with a letter to this effect? No sign of anywhere you can declare it on the form 11 itself

cj maxx

whelan1 wrote: »

do you have the farmers handbook all relevant answers should be in it we found it invaluable when doing our transfer

i was browsing stuff about accounts and read about ''the farmers handbook'' in this thread
what is it and where can i get it?
thanks

Rovi

cjmc wrote: »

i was browsing stuff about accounts and read about ''the farmers handbook'' in this thread
what is it and where can i get it?
thanks

Here you go:
http://www.farmershandbook.ie/default.asp

It's usually published towards the end of the year, as far as I can remember, so the 2013 edition will be out in a couple of months.
Usually available off the shelf in newsagents/bookshops too.

foyle

arrowman wrote: »

I think you need to submit the letter of equivalence along with your application for the relief - see page 4 of this leaflet outlining the relief.

Teagasc are the body that certify that your qualification is suitable to qualify for the relief and the Revenue only really recognise a letter of equivalence from Teagasc to that effect. As far as I'm aware there is a small fee (small relative to the amount of the stamp duty you are saving) for issuing the letter. The rest of the paperwork for the transfer can be handled by your solicitor without any involvement from Teagasc or a consultant.

Also don't forget to sort out the transfer of any single payment entitlements that may be going along with the land. You should talk to your adviser/ consultant about this also.

Hi All
Can anyone tell me about the leaflet thats attached to the above post..is there something to do with stamp duty changing on Dec 31st this year....maybe I had better get the skids on the parents

FLC

Hi,

We are looking to transfer the family farm home into my name ( to refurbish the house and cohabit with my parents). We are trying to do this under agri relief and to keep use of my Inheritance allowance as low as possible. What is the minimum amount of land that needs to accompany the transfer of the farm home to meet this requirement?


I am an active farmer and have no other property.

Thanks

lakill Farm

FLC wrote: »

Hi,

We are looking to transfer the family farm home into my name ( to refurbish the house and cohabit with my parents). We are trying to do this under agri relief and to keep use of my Inheritance allowance as low as possible. What is the minimum amount of land that needs to accompany the transfer of the farm home to meet this requirement?


I am an active farmer and have no other property.

Thanks

you really need to talk to a tax advisor to discuss this in full

The_Conductor

FLC wrote: »

Hi,

We are looking to transfer the family farm home into my name ( to refurbish the house and cohabit with my parents). We are trying to do this under agri relief and to keep use of my Inheritance allowance as low as possible. What is the minimum amount of land that needs to accompany the transfer of the farm home to meet this requirement?


I am an active farmer and have no other property.

Thanks

Teagasc have succession planners on their staff- who can give you accurate and pertinent advice. Even the Farming and Forestry forum gang here on boards- would have an idea- but you really need professional advice.

rangler1

FLC wrote: »

Hi,

We are looking to transfer the family farm home into my name ( to refurbish the house and cohabit with my parents). We are trying to do this under agri relief and to keep use of my Inheritance allowance as low as possible. What is the minimum amount of land that needs to accompany the transfer of the farm home to meet this requirement?


I am an active farmer and have no other property.

Thanks

Not knowing your circumstances, but is it wise for your parents to transfer their home, like what would their position be if you died.
Possiblybetter if you transferred the same value in land instead if you want a commitment on their part or security for a loan to refurbish the house.

FLC

Thanks for the replies, it is with a tax adviser. In terms of security for parents you can build in "right of residence" for parents, siblings etc into such transfers.

barnaman

Remember Right of residence subject to CAT

http://www.revenue.ie/en/tax/cat/guide/rights-of-residence.html