Farm transfer

aidanki

farm transfer going on in my family at the min, and one question that is popping up is the asset test

Per the rules to qualify for stamp duty relief one condition is that the farm be greater than 80% of total assets, when transfer is complete, Im not sure I can meet that.

Other than valuing the land at some crazy value, what else can I do to meet that ?

wondering was anyone else in this position in the past ?

PM answer if you like

50HX

PM SENT

Mooooo

Is it 80% of non agricultural assets? If the asset is a house or whatever and your married could put it in her name or joint names maybe dunno other than that

Grueller

Mooooo wrote: »

Is it 80% of non agricultural assets? If the asset is a house or whatever and your married could put it in her name or joint names maybe dunno other than that

Family home is exempt afaik.

cacs

aidanki wrote: »

farm transfer going on in my family at the min, and one question that is popping up is the asset test

Per the rules to qualify for stamp duty relief one condition is that the farm be greater than 80% of total assets, when transfer is complete, Im not sure I can meet that.

Other than valuing the land at some crazy value, what else can I do to meet that ?

wondering was anyone else in this position in the past ?

PM answer if you like

I went through this a few months ago I would definitely recommend talking to a good accountant. Went a guy called called martin o Sullivan in carrick on suir. You can also look to do the transfer of a business scheme.

cute geoge

A 90k new tractor will surely let you qualify

tcow

Mooooo wrote: »

Is it 80% of non agricultural assets? If the asset is a house or whatever and your married could put it in her name or joint names maybe dunno other than that

That's just a silly idea. Mooooo you obviously don't know anything about property laws . Why reply to threads you know nothing about??

Waffletraktor

tcow wrote: »

That's just a silly idea. Mooooo you obviously don't know anything about property laws . Why reply to threads you know nothing about??

Are you the pot or the kettle?

Bass Reeves

Nothing wrong with over valuing land it could avoid CGT down the line.

charolais0153

Bass Reeves wrote: »

Nothing wrong with over valuing land it could avoid CGT down the line.

How. I thought if the land was worth 30k but you valued it at 60k you'd have to pay double the tax

Bass Reeves

charolais0153 wrote: »

How. I thought if the land was worth 30k but you valued it at 60k you'd have to pay double the tax

Using Agri relief allows you reduce your libiality for CGT by 90% of the vale of the farm. To avail of it you have to have 80& in agri assets.

Farmer Tom inherit's a farm worth 500K from his father, as well as him family home he has a rented house worth 200K. His allowance is 280K so he is libel for 72K in inheritance tax.

Farmer John inherits a farm worth 800K from his father, like Tom he has a rented house worth 200K. Now in reality his tax liability is about 170K. However if the farm is valued at over 1 million ( or he has other agri assest to bring him over that amount) he qualifies for agri relief and pays no Tax.

Now if he valued it at above 1 million and 15 years down the road he sold it he only pay tax on value above that value. Poor old Tom get caught for another 66K. However it is really a tightrope as fairy realistics land value have to be in place for revenue. You might get away with 10-15% but valuing a 50 acre farm at 1 million would not wear.

lakill Farm

The valuation should be carried out by an auctioneer.

overvaluing the asset would be noticed by revenue. They know the value of land.

Bass Reeves wrote: »

Using Agri relief allows you reduce your libiality for CGT by 90% of the vale of the farm. To avail of it you have to have 80& in agri assets.

Farmer Tom inherit's a farm worth 500K from his father, as well as him family home he has a rented house worth 200K. His allowance is 280K so he is libel for 72K in inheritance tax.

Farmer John inherits a farm worth 800K from his father, like Tom he has a rented house worth 200K. Now in reality his tax liability is about 170K. However if the farm is valued at over 1 million ( or he has other agri assest to bring him over that amount) he qualifies for agri relief and pays no Tax.

Now if he valued it at above 1 million and 15 years down the road he sold it he only pay tax on value above that value. Poor old Tom get caught for another 66K. However it is really a tightrope as fairy realistics land value have to be in place for revenue. You might get away with 10-15% but valuing a 50 acre farm at 1 million would not wear.