Inheriting a farm, and green cert or like

alfaromeo84

My other half's uncle has mentioned leaving the farm to her in his will, however this would mean inheritance tax. The local postman mentioned to her father recently that he had inherited a family farm, and was advised to do some course that would mean he could take it over without tax.

Her father has only half the story when asked, and neither of us see the postman any day.

Can anybody here shed light on it?

Username John

alfaromeo84 wrote: »

My other half's uncle has mentioned leaving the farm to her in his will, however this would mean inheritance tax. The local postman mentioned to her father recently that he had inherited a family farm, and was advised to do some course that would mean he could take it over without tax.

Her father has only half the story when asked, and neither of us see the postman any day.

Can anybody here shed light on it?

I think it might be stamp duty relief you're referring to?
http://www.revenue.ie/en/tax/stamp-duty/leaflets/sd2b.pdf

Course : http://www.teagasc.ie/training/courses/dist_ed_green_cert.asp

The stamp duty might not be massive.
Check out this link as well - this one is prob more important
http://www.revenue.ie/en/tax/cat/leaflets/cat5.html

Justjens

It is still possible to avail of the 90% ag relief when inheriting a farm, if more than 80% of the beneficiaries assets are agricultural, after the inheritance, they only pay tax on 10% of the farm value.

BUT, there's always a catch.. it would make life a lot easier if your other half had a green cert, as the relief is now only available to qualified farmers.

But if she does not have a GC she can rent the farm on a long term lease (5yrs or more, income tax free) to a qualified farmer and still qualify for the 90% ag relief. That's the easiest way and guaranteed income to help pay the CAT.

Whether this relief will still be available at the time of her uncle's passing is anyone's guess.........

leoch

I wonder can the cg relief be back dated as I paid it a few years ago and am in the middle of doing the green cert now

mayota

leoch wrote: »

I wonder can the cg relief be back dated as I paid it a few years ago and am in the middle of doing the green cert now

I think you have five years to get trained.

Eggie99

Hi op,

Im actually going through what your asking about at the min after my uncle passed away last year. So far what the other posters have said is correct, the green cert(young trained farmer) is a great bonus to have for the purpose in hand. For the 2000+ odd euro it costs to do it, you save thousands on Stamp duty alone. Provided that your under 40(theres always a catch) at the time of succession AFAIK. Another thing to be aware of is that to be eligible for the tax relief, in your other half case, it falls under a clause called "the favorite neice/nephew". Now this is the tricky one, if for example you live and work in Dublin but the uncles farm is in Donegal, revenue find it hard to believe that the niece or nephew would be tracking across the country to "help out" on the farm and will do there best to fleece you for 33% the value of everything willed to you less a 36000euro tax free allowance. If your lucky enough to be living in the locality of the farm it's a massive help. Anything that ties him into the farm is a massive help.

Although that all sounds tricky it's not as bad as it seems.

A good Solicitor is have the battle and for everything else there's Mastercard..........

If you want to know anything else you can pm me and I'll try advise best I can from my own experience

groovyg

I'm not sure where I should ask this . What happens if you have a farm where the owner who has adult kids (over 35 yrs of age) dies intestate. None of the adult children are involved with the farm and want to sell it. Do they need to do the Green cert in order to avoid all the costs that come with inheritance?

barnaman

They should be okay. Lets say 4 children and 1 million value farm. The quarter value of farm will be 250000 each just about the inheritance level for a child so they can sell and pay minimal if any tax. Probate, sols auctioneers fees etc can never be avoided. If a real life sitaution might be able to help more if a few more facts size farm and number children

Tarzann

Hi, Replying here rather than start a new topic as a lot of what was previously said is relevant to me.

I will be taking over my uncle's farm under the favourite nephew rule. My uncle is currently over the retirement age but still working the farm full time.
At the moment I live some distance away and help out some weekends but will soon be moving to the area for work.

My main question is what proof might Revenue ask for later in terms of working a min. 15 hours per week in order to qualify for the favourite nephew relief?
Should I be paid a wage, and registered as a tax-paying employee of the farm? My uncle's accountant suggested this to him recently.

Or will the fact that I will soon live very close to the farm mean that any time from then on will count as working part time due to living in close proximity making it viable, without the need to collect a wage from my uncle?

I am currently 36 and will be in my early 40's when I finally take over which rules out any Stamp duty relief as far as I know but the tax benefit as favourite nephew will be on the much larger Capital Acquisition Tax.
I have completed the Green Cert last year.

Lastly, my uncle's understanding from a recent meeting with his accountant left him under the impression that there was a change in the recent budget regarding farm handovers and we need to get things in motion before the end of 2018, however from reading budget 2019 summaries on multiple reports I can't find anything that this could refer to. ??

Would be interested to hear from anybody who has taken over a farm as a favourite niece / nephew, or currently is going through the process.

Thanks for any advice.

Panch18

First thing I would say is ye both visit the accountant together so that ye can formulate the best most tax efficient way of doing it

Money spent on tax is money wasted

Tarzann

Have already visited my uncle's solicitor with him for a sort of early stage chat and will be getting my own solicitor soon.

The main thing I'm unsure of right now, which has a fairly big financial implication, is whether, I will pay 1% or 6% Stamp Duty (assuming no further Budget changes).
I'm too old for the Young Trained Farmer Stamp Duty relief but feel I am entitled to Consanguinity Relief, but am not 100% sure.

https://www.revenue.ie/en/property/stamp-duty/working-out-your-stamp-duty/consanguinity-relief.aspx

This document includes niece/nephew as eligible. Also the age limit of 67 years on the transferror seems to have been removed in 2017.

Any replies appreciated.