Transfer farm back to parents?

bananas10

I hope this is the right forum.
My husband has been farming for the past 6 years on a farm that was transferred to him by his parents. Due to extreme personal circumstances, we now need to transfer it back to them. I know it is legally possible but I was wondering if this has ever been done by anyone here? We are meeting with our solicitor soon to discuss it but I'd like to see if anyone has done it before. Thanks

lakill Farm

can he transfer to you?
could he transfer the land to you and assets into a company.
could he transfer all assets to company and rent the enterprose out.

Likehood is the parents wount want it back

look at all the options first.

PM me if you want

bob charles

lakill Farm wrote: »

can he transfer to you?
could he transfer the land to you and assets into a company.
could he transfer all assets to company and rent the enterprose out.

Likehood is the parents wount want it back

look at all the options first.

PM me if you want

What would the tax situation be if reversing a transfer from a few years ago?

Pawwed Rig

There are potentially major tax implications on this so I would recommend approaching a specialist tax advisor.

whelan1

Pawwed Rig wrote: »

There are potentially major tax implications on this so I would recommend approaching a specialist tax advisor.

tax advisor/ accountant/ solicitor/ teagasc
would it work if farm was in parents and your names?

bananas10

Thanks folks. Its the tax implications that concern me most. If it's going to work out too expensive then I'm not sure what we'll do. We'll see what our solicitor recommends and take it from there.
We won't be transferring any of it to me anyway. Too many complications!

kowtow

Without knowing the circumstances it's difficult to be specific, but transfers made in the face of financial catastrophe - and this may be way off the mark in this case - are frequently capable of reversal by the courts in due course. In other words, if you are facing court action, for example, and see the need to transfer an asset in order to avoid losing it, it's usually too late to do so.

Again, may be way off the mark here but a point worth bearing in mind.

yesman2000

What taxes, specifically, do people think will cause a big tax liability in this scenario ?

lakill Farm

bob charles wrote: »

What would the tax situation be if reversing a transfer from a few years ago?

CAT, CGT and stamp duty.

But there are many more circumstances i would consider and methods of resolving the issue.

grazeaway

there is also a time limit on grants drawn down too, so if any installation aid or grants for farm improvments were paid down they will have to be paid back if the time limit on them has not expired. off the top of my head it think its 5 years but i'm not sure, again your teagasc advisor should know that and it'll also be in the paper work if any of those grants were applied.

while not wanting to pry is there a reason why you want to transfer it back to the parents? i assume this was done for ealy retriment for them there also maybe tax implications for them too. is there another sibling that woul dbe more suitable?

Pawwed Rig

yesman2000 wrote: »

What taxes, specifically, do people think will cause a big tax liability in this scenario ?

There could be any number of issues for example if any of the land is considered development land, clawbacks on previous relief, CGT, CAT etc etc etc. This is why a tax advisor is needed. A solicitor or accountant may not know all the ins and outs of it and with CGT/CAT now at 33% you cannot afford a mistake.

hugo29

bananas10 wrote: »

I hope this is the right forum.
My husband has been farming for the past 6 years on a farm that was transferred to him by his parents. Due to extreme personal circumstances, we now need to transfer it back to them. I know it is legally possible but I was wondering if this has ever been done by anyone here? We are meeting with our solicitor soon to discuss it but I'd like to see if anyone has done it before. Thanks

if its legally possible then you dont need to see a solicitor, you need to speak to Tax Consultant and Teagasc to see what the implications are

Have you any children, if you are trying to put it out of the Banks reach then as previously stated this may prove difficult if a) proceedings have already been issued against your husband or you are aware they may be issued

does anyone know would a long term lease say 99 years work where you lease from your husband, or place it in trust

grazeaway

hugo29 wrote: »

if its legally possible then you dont need to see a solicitor, you need to speak to Tax Consultant and Teagasc to see what the implications are

Have you any children, if you are trying to put it out of the Banks reach then as previously stated this may prove difficult if a) proceedings have already been issued against your husband or you are aware they may be issued

does anyone know would a long term lease say 99 years work where you lease from your husband, or place it in trust

give david drumm a call he has most of his stuff transfered over to a trust and to his wife and has been allowed to concoct some great ways to hide his (sorry IBRC's/our) money. but then again he proably still has some buddies in around central bank and lienster house who will make sure he doesnt have to face any scantion.