Certs needed for Farm Inheritance

Anthony16

Hi there,
I am in college at the moment and will be pursuing a career outside of farming.However,I am the only nephew on my uncles side and a probable successor to the farm when he retires(he doesnt have enough work for me at the minute). Last year he said there was a new law brought in whereby one must have completed an agricultural course in order to avoid Capital Gains and stamp duty costs. May I ask if this is the advanced cert in agriculture level 6 and if it can be completed online as I wont have the time to spend 2 years doing it due to work.
Thanks a lot

freedominacup

Anthony16 wrote: »

Hi there,
I am in college at the moment and will be pursuing a career outside of farming.However,I am the only nephew on my uncles side and a probable successor to the farm when he retires(he doesnt have enough work for me at the minute). Last year he said there was a new law brought in whereby one must have completed an agricultural course in order to avoid Capital Gains and stamp duty costs. May I ask if this is the advanced cert in agriculture level 6 and if it can be completed online as I wont have the time to spend 2 years doing it due to work.
Thanks a lot

Judging from the fact you are in college you need to get your hands on Revenue leaflet SD2B. There are a list of exempt courses in it. You may not need to complete the advanced cert if you already have a level 6 or higher qualification. If you are older than your post would indicate then you need to pay close attention to the "Transitional Arrangements" section in the early part of the booklet. If you think this applies to you then you will need to get some of the older booklets, SD2A or SD2. The original act goes back to 1999 and the original exemptions come from there and the current exemptions have evolved from there. You do not need to comply to current exemptions if you completed a course at an earlier time. If you did Teagasc not Fetac have the competence to certify your qualifications equivalance.

Anthony16

Thanks a lot for your help.
I will have completed one of the qualifications in the schedule 2B qualifications list. Does this leaflet only concern the avoidance of stamp duty?

If so,is there now a specific qualification needed to avoid capital gains tax if one inherits a farm?As in,can the definition of "farmer" only be applied to someone who has completed a fetac?

Thanks again

KCTK

Anthony16 wrote: »

Thanks a lot for your help.
I will have completed one of the qualifications in the schedule 2B qualifications list. Does this leaflet only concern the avoidance of stamp duty?

If so,is there now a specific qualification needed to avoid capital gains tax if one inherits a farm?As in,can the definition of "farmer" only be applied to someone who has completed a fetac?

Thanks again

Hi Anthony, to avail of agricultural relief and avoid Capital Acquisition Tax (unless getting a multi million euro farm!!) you must qualify as a "farmer" per legislation in the CAT acts. In these to be a farmer at least 80% of your assets when you get this farm must be agricultural. So once you don't own a few houses mortgage free or loads of shares you should qualify. CGT only effects the person who gives over the farm to you, not you as the person receiving it.

Anthony16

Im sorry you are correct.I meant Capital Acquisitions Tax.
That seems to answer the questions of both stamp duty and capital acquisitions tax.
Thanks a lot

Anthony16

Hi again,
I have just been doing a little more reading with regard to Capital acquisitions tax.I have read that this is a "gift" tax i.e. the transfer of land from owner to recipient.
However,is there a different type of tax applicable to those who receive a farm through inheritance which is distinguishable from a gift transfer?
Thanks a lot

KCTK

Anthony16 wrote: »

Hi again,
I have just been doing a little more reading with regard to Capital acquisitions tax.I have read that this is a "gift" tax i.e. the transfer of land from owner to recipient.
However,is there a different type of tax applicable to those who receive a farm through inheritance which is distinguishable from a gift transfer?
Thanks a lot

Hi Anthony, it is called "gift" tax but also covers inheritances from wills or probate, so no difference to recipient from a tax point of in whether donar is dead or alive.