Inheriting a farm.

Captain Havoc

Hi, not sure if this has been put in before. My dad passed away in March and I've been left the farm. It's planted. I've been told I need to go and do an agri course, I thought as the son of a farmer I didn't. Does anyone know what is the correct course I need to do? Is there anything else from a legal point I need to get in order. Everything is still with the solicitor at the moment.

bogman_bass

You don't have to do a course but you should do a course unless you want to get a hefty inheritance tax bill.

Being the son of a farmer doesn't come into it. If it did there would be nobody in our agri colleges

patsy_mccabe

His dad passed away so he has no tax to pay. Different when the person signing over the farm is still alive. There is a limit though circa 2 million value and the farm can't be sold for 5 years.

Sam Kade

patsy_mccabe wrote: »

His dad passed away so he has no tax to pay. Different when the person signing over the farm is still alive. There is a limit though circa 2 million value and the farm can't be sold for 5 years.

Agricultural relief
http://www.revenue.ie/en/tax/cat/leaflets/cat5.html

Base price

Revenue have lots of information on their website. Here is a link that you may find helpful. http://www.revenue.ie/en/tax/cat/leaflets/cat5.html#section2
Also ensure that you talk to an accountant who has knowledge of the agri sector, don't assume that your solicitor has all the answers or visa versa.

patsy_mccabe

If you don't qualify for agriculture relief, you will more than likely qualify for business relief.

Username John

I think - and I stand to be corrected here.
- forestry premiums are less for non farmers
- forestry premiums are paid for a shorter duration to non farmers (20yrs vs 15yrs)

Given the farm is planted - you may need to do a course to become a farmer to continue to receive the farmer level of forestry premiums...

Now, it's a while since I looked at this, and given the premium decision had been made based on your late father, maybe it's a non issue.

Might be something worth investigating...

Best of luck, and condolences about your da.

lakill Farm

Capital acquisition Tax (CAT) is applicable on the land .

This can be reduced with Agri relief or business relief



Stamp duty is 0% on inheritance. 1% on farm land is passed before death from a family member .(2% if not a family member) This 1% can be saved with a green cert

Panch18

If the government, and more to the point its advisors and lobyists, was interested in getting a younger generation into farming then they could do a whole lot worse then have the transfer of the asset treated the same whether the gifter is dead or alive

One less excuse for auld lads to hold onto the land till the bitter end.

patsy_mccabe

lakill Farm wrote: »

Capital acquisition Tax (CAT) is applicable on the land .

This can be reduced with Agri relief or business relief



Stamp duty is 0% on inheritance. 1% on farm land is passed before death from a family member .(2% if not a family member) This 1% can be saved with a green cert

Lakill, can you explain what the maximum value of land is, that can be inherited without having to pay any CAT?

lakill Farm

patsy_mccabe wrote: »

Lakill, can you explain what the maximum value of land is, that can be inherited without having to pay any CAT?

€320,000 Theshold from Parent
€320,000 /10% = €3.2M

plus the small annual €1,270 credit but whats that between friend if you have gotten €3.2m

patsy_mccabe

So you can inherit a farm from your parent worth €3.2million without paying any Capital Acquisition Tax? Just to clarify!!!!

lakill Farm

patsy_mccabe wrote: »

So you can inherit a farm from your parent worth €3.2million without paying any Capital Acquisition Tax? Just to clarify!!!!

with agricultural relief and a green cert :rolleyes:

patsy_mccabe

lakill Farm wrote: »

with agricultural relief and a green cert :rolleyes:

What about Business Relief for those that don't have the green cert?
In the case of inheritance on the death of a parent.

lakill Farm

patsy_mccabe wrote: »

What about Business Relief for those that don't have the green cert?
In the case of inheritance on the death of a parent.

2 separate issues

No stamp duty on inheritance , but before death its 1% stamp duty from a family member. (0% if you have green cert)