35 next year

Toplink

I am 34 years old, 35 next summer.

Ould fella only in his late 50's so will be farming for another 7/8 years with the help of god.

I have my farm cert complete, did it online back in 2006.

I am confused around the tax implications if I don't take over the farm before I am 35? Or is there any? The lightly hood is that i'll be 40 before I will take control.

I was going to set up a meeting with my local Agri Consultant to get some advice but said I'd ask here first

kevthegaff

do u have to pay higher stamp duty and inheritance tax? i have another 5 years so no worries yet

KCTK

kevthegaff wrote: »

do u have to pay higher stamp duty and inheritance tax? i have another 5 years so no worries yet

Stamp duty is currently the only relief that is age dependant (under 35 with Green Cert no stamp duty). If over 35 and you take over from the ould fellow then stamp duty at 1%. The Agricultural relief from Capital Acquisition tax is dependant on your assets (over 80% being farming after taking over) and not your age.

But that is the reliefs at present, god only know what reliefs will be available after this Decembers budget, never mind in 7 or 8 years time!!!

Toplink

KCTK wrote: »

Stamp duty is currently the only relief that is age dependant (under 35 with Green Cert no stamp duty). If over 35 and you take over from the ould fellow then stamp duty at 1%. The Agricultural relief from Capital Acquisition tax is dependant on your assets (over 80% being farming after taking over) and not your age.

But that is the reliefs at present, god only know what reliefs will be available after this Decembers budget, never mind in 7 or 8 years time!!!

Thanks for that feedback. That's pretty clear under the current rates.

Yeah, one wonders what lies ahead alright.

DMAXMAN

KCTK wrote: »

Stamp duty is currently the only relief that is age dependant (under 35 with Green Cert no stamp duty). If over 35 and you take over from the ould fellow then stamp duty at 1%. The Agricultural relief from Capital Acquisition tax is dependant on your assets (over 80% being farming after taking over) and not your age.

But that is the reliefs at present, god only know what reliefs will be available after this Decembers budget, never mind in 7 or 8 years time!!!

the 1% stamp relief is for young qualified farmers under 35.after that its 4.5%.with rising land prices it can amount to quite a bit of money:mad:

huey1975

DMAXMAN wrote: »

the 1% stamp relief is for young qualified farmers under 35.after that its 4.5%.with rising land prices it can amount to quite a bit of money:mad:

You are wrong

Tipp Man

DMAXMAN wrote: »

the 1% stamp relief is for young qualified farmers under 35.after that its 4.5%.with rising land prices it can amount to quite a bit of money:mad:

that doesn't sound right at all

2% is the rate

to the original poster - have a read of this page - it outlines it in pretty good detail

http://www.ifac.ie/ifac_taxation12.htm

DMAXMAN

Tipp Man wrote: »

that doesn't sound right at all

2% is the rate

to the original poster - have a read of this page - it outlines it in pretty good detail

http://www.ifac.ie/ifac_taxation12.htm

stand corrected. didnt realise it had changed recently. i was just remembering what happened to me 6 years ago and it cost me 45k

KCTK

DMAXMAN wrote: »

stand corrected. didnt realise it had changed recently. i was just remembering what happened to me 6 years ago and it cost me 45k

Ya big change in last Decembers budget, one of the few good things...

1chippy

Toplink wrote: »

I am 34 years old, 35 next summer.

Ould fella only in his late 50's so will be farming for another 7/8 years with the help of god.

I have my farm cert complete, did it online back in 2006.

I am confused around the tax implications if I don't take over the farm before I am 35? Or is there any? The lightly hood is that i'll be 40 before I will take control.

I was going to set up a meeting with my local Agri Consultant to get some advice but said I'd ask here first

Dont hold your breath i have yet to see a farmer retire at65

iverjohnston

I read the thread heading, and thought you were looking for a girlfriend!

Iver in Cavan:D

darragh_haven

iverjohnston wrote: »

I read the thread heading, and thought you were looking for a girlfriend!

Iver in Cavan:D

Are you offering Iver... or is it Ivana:D

Toplink

iverjohnston wrote: »

I read the thread heading, and thought you were looking for a girlfriend!

Iver in Cavan:D

Thanks lad. I'll run it by the wife first and i'll get back to ya.

noworries2004

HI,
I am currently in the prosses of getting my stuff together to get the farm signed over to me,

One Q,
I did the Teagasc 180 hr course, but i cant find my cert.
Will a letter from Teagasc saying i have completed this course be sufficient for the transfer to avoid tax

Username John

noworries2004 wrote: »

HI,
I am currently in the prosses of getting my stuff together to get the farm signed over to me,

One Q,
I did the Teagasc 180 hr course, but i cant find my cert.
Will a letter from Teagasc saying i have completed this course be sufficient for the transfer to avoid tax

I think I had to contact FETAC, as they were the people who certified the course? Cost me about 15 euro I think, but they sent me another cert.

noworries2004

Excellent thanks john, saves me digging for days looking for it

20silkcut

What are the advantages/disadvantages of signing over bar the obvious of dramatic personal net worth increase.

Is it advantageous in today's climate to have little in your name and rent land off your father. Is it better to have that additional outward receipt to reduce your tax liability.

The revenue are in particularly ravenous mood at the moment. Why put your head above the parapet and take ownership of such a valuable asset.

If the farm is willed to you your sorted.

hunter15

iverjohnston wrote: »

I read the thread heading, and thought you were looking for a girlfriend!

Iver in Cavan:D

I though he was looking to change his tractor

LivInt20

20silkcut wrote: »

What are the advantages/disadvantages of signing over bar the obvious of dramatic personal net worth increase.

Is it advantageous in today's climate to have little in your name and rent land off your father. Is it better to have that additional outward receipt to reduce your tax liability.

The revenue are in particularly ravenous mood at the moment. Why put your head above the parapet and take ownership of such a valuable asset.

If the farm is willed to you your sorted.

Always better to transfer before death rather than in a will.

okiss

I would be trying to get the land in your name now when you are not going to have to pay the revenue a large amount of money for doing this.
Also if your father is in his late 50's what would happen if he died suddenly which can happen. Your farm could have issues with maps or legal ownership papers that are not in order which can cause a lot of problems. You could have a bank account which you can't use or forms you can't fill in.
Also you could be left with a high tax bill to pay because of this.
If you get this sorted out when your father is alive it makes things a lot easier for you. I am saying this as I know of a farmer who died suddenly and his family end up with the above.
You need to be a position to make plans for your own future as well as the farms future. What happens if you meet/have meet someone you want to marry? If nothing is in your name you not going to be in a position to get a mortgage or a loan to do work on the farm.

kevthegaff

i duno, if your planning on getting married are you not better off leavin it the auld lads name, divorce 1/2 the land:(.

Toplink

okiss wrote: »

I would be trying to get the land in your name now when you are not going to have to pay the revenue a large amount of money for doing this.
Also if your father is in his late 50's what would happen if he died suddenly which can happen. Your farm could have issues with maps or legal ownership papers that are not in order which can cause a lot of problems. You could have a bank account which you can't use or forms you can't fill in.
Also you could be left with a high tax bill to pay because of this.
If you get this sorted out when your father is alive it makes things a lot easier for you. I am saying this as I know of a farmer who died suddenly and his family end up with the above.
You need to be a position to make plans for your own future as well as the farms future. What happens if you meet/have meet someone you want to marry? If nothing is in your name you not going to be in a position to get a mortgage or a loan to do work on the farm.

Alot of good points there and plenty to think about.

At the moment I'd say I do about an hours farm work a week! I have a full time job that pays well in an industry that's going well at the moment. Herself works away aswell in the civil service. So I don't rely on any income from the farm.

I have no interest in having the farm income in my name for tax reasons. Plus my parents will rely on its income for the next 7/8 years or so anyway.

My long term plan would be to farm full time when the kids are reared. I'll be 55 by then and healthy with the help of god.

One bug bear I have is that our farm is capable of so much more than we are doing with it at present. Dad partime farmed all his life and i'll be the same so stock numbers were always kept low enough to suit this lifestyle. I think of all the work my grandfather did and how he expanded and made a decent living for himself in tough times and I would love to have a crack at it full time some day and expand it again.

But I am lucky to have a job that pays well and the kids will get a good education on the back of it but you cant help but dream I suppose.

20silkcut

LivInt20 wrote: »

Always better to transfer before death rather than in a will.

How often does this happen . How many farmers retire and transfer ownership when their successor reaches 35?? It's a pretty big ask. Many farmers are still fresh as daisies in their 60s when their successor reaches 35.
Where did this 35 come from? Why did they pick that age ? Why not 45 or 50 ?



Many older people hold on to property to ensure they are looked after into old age and I have seen many instances where people who transfer land are ignored later on in life as they become irrelevant to people's requirements and no longer need to be courted as such. Even in a parent child situation, actually mostly in a parent child situation. I know it's murky but that is human nature we are all very calculating and self consumed.

okiss

To 20Silkcut

I have seen grown men working hard on a farm, having no life and the father is unwilling to make any changes or improvements. The son's are like primary school kids as what Daddy says goes. When the father eventually dies they end up giving a lot of money to revenue because the farm is not in there name.
Why should a man in his mid 60's to mid 70's be calling all the shots with the son working long hours without having any type of ability to make plans for the farm or plans in regards to there own lives. What happen if a son in this case meets a woman and wants to get married?
I watched a friend of mine going out with a guy aged 40 who was unwilling to tell her anything about his set up, his parents did not know about her for a long time despite her being a nice girl with a good job and savings. Eventually she met them and they did not make her welcome. She ended the relationship as she finally realisied it was going no where due to the fact that he was immature. He was unwilling to stand up for himself with the father when he was going out with her or in regards to getting the farm in his name.

20silkcut

I could give plenty examples of instances too where people were disastrously worse off after signing over to a son. You are giving extreme examples. Most father/sons have great working relationships on farms and both need each other. Don't get me wrong I am on the successor side of the fence I am 33 years old myself and lost my father in jan so it is very much in my mind at the moment. But I do see things from both sides. I am a firm believer that a farm should be earned by the successor not handed to them because they are 35. I don't expect anything to be handed to me. My father lord of mercy on him didn't have sole ownership of his farm until he was 63 and he died at 70. None of us can take it with us.

xDramaxQueenx

i think it is so disrespectful to refer to your father as "the aul lad". You are getting a farm. the least you can show is a little manners when referring to him.