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CGT on Retirement relief Qualifying Assets

  • 24-06-2015 12:54pm
    Registered Users Posts: 3

    Hey all,

    I have a query in relation to qualifying agricultural assets.

    I have a farmer who wishes to gift a farmhouse with a small parcel of land to a son.

    The farmer is 66 and qualifies for retirement relief, the son will not be suitable for agricultural or business relief, the land will be farmed but arguably not commercially! Therefore normal CAT will apply.

    For CGT is it correct to presume that the dwelling house (not PPR of farmer) and attached land will be suitable for retirement relief? There has been a farmhouse on this parcel of land for over 100 years and the farmsheds are in excess of 100 years old, this is a typical old school Irish farm cottage and farm set up.

    My understanding is the property and non private residence house are character appropriate to the farmer and therefore the farmer gifting this should not be liable for CGT (with appropriate thresholds considered).

    However is there a specific way of proving that character appropriate is met to come to this conclusion.... appears as clear a mud!!


  • Registered Users Posts: 17 deruler

    I think you are confusing the definitions of agricultural property for agricultural relief from CAT and the definition of chargeable business assets for retirement relief from CGT.

    Also I would not be so quick to rule out agricultural relief applying to the son. You should review the guidance issued by Revenue last Christmas Eve.

  • Registered Users Posts: 9,798 ✭✭✭Mr. Incognito

    PPR applies to CGT

    Farmers relief applies to CAT

    Where CGT and CAT Arise on the same transaction there is a CGT CAT set off.

    Where you are getting advice in relation to land

    1. Read the charter. It's banned.

    2. It's banned because you shouldnt be getting tax advice on land from a ****ing internet forum

    Pay a properly insured professional ffs.

  • Registered Users Posts: 3 AK Mon

    Thanks deruler its possibly i am confusing the CAT definition of chargeable business assets versus the CGT..... looking for more guidance on the CGT piece ie does a business asset include dwellings on land / farmhouses.

    Will look into ag relief but very very unlikely as no green cert, not using it as a business etc etc.

    Mr. Incognito not looking at PPR here clarifying it is not, okay with the land piece, and looking at retirement relief rather than Agricultural relief. Also of obviously professional relief will be obtained..... however always best to guide someone on potentials!