Farm transfer / tax relief

MfMan

Probably been covered umpteen times, but a couple of things I'm trying to figure out;

For the purposes of CAT tax relief, a transferee can benefit from this on the day after transferring if at least 80% of their assets are farm-related; I assume assets include land, buildings, farm machinery, current livestock. Do they also include farm entitlements / BPS payments? Also, is the farm dwelling house included?

For valuing land etc., a valuation from an auctioneer must be sought; how is livestock valued? Is it at date of purchase or can (presumed) appreciation in value be taken into account?

Non-farm assets that may count against this 80% are cash in hand, other non-agricultural property owned, personal car or other vehicles, investments/share portfolio?

How does one begin the transferal process? If a transfer is submitted and the Revenue decide that one hasn't reached the 80% threshold limit as above, can the transfer be withdrawn, assets recalculated to a higher value and then resubmitted? Where is the point of no-return?

rangler1

MfMan wrote: »

Probably been covered umpteen times, but a couple of things I'm trying to figure out;

For the purposes of CAT tax relief, a transferee can benefit from this on the day after transferring if at least 80% of their assets are farm-related; I assume assets include land, buildings, farm machinery, current livestock. Do they also include farm entitlements / BPS payments? Also, is the farm dwelling house included?

For valuing land etc., a valuation from an auctioneer must be sought; how is livestock valued? Is it at date of purchase or can (presumed) appreciation in value be taken into account?

Non-farm assets that may count against this 80% are cash in hand, other non-agricultural property owned, personal car or other vehicles, investments/share portfolio?

How does one begin the transferal process? If a transfer is submitted and the Revenue decide that one hasn't reached the 80% threshold limit as above, can the transfer be withdrawn, assets recalculated to a higher value and then resubmitted? Where is the point of no-return?

Business relief is similar to agriculture relief without the 80% asset requirement, there are other differences but still might be worth looking into.
Land values falling at the moment is making it difficult to comply with the 80%

MfMan

rangler1 wrote: »

Business relief is similar to agriculture relief without the 80% asset requirement, there are other differences but still might be worth looking into.
Land values falling at the moment is making it difficult to comply with the 80%

Thanks for reply. Probably won't go down that route but is a VAT number required for business relief?

rangler1

MfMan wrote: »

Thanks for reply. Probably won't go down that route but is a VAT number required for business relief?

,

Don't know that, but it makes sense. I know two that got in under business relief and they could have vat numbers.
I don't know the Terms and Conditions of Business Relief, hence the comment ''might be worth looking into''

MD1983

MfMan wrote: »

Thanks for reply. Probably won't go down that route but is a VAT number required for business relief?

no - its not a requirement. ag relief and business relief have some differences so you should research both thoroughly. if you read the Revenue CAT manual most of your questions in original post are dealt with there

MD1983

Do they also include farm entitlements / BPS payments? Also, is the farm dwelling house included?

all assets are taken into account, broadly assets are taken at their gross rather than net value (i.e. debts are not deducted) other than an off farm PPR


For valuing land etc., a valuation from an auctioneer must be sought; how is livestock valued? Is it at date of purchase or can (presumed) appreciation in value be taken into account?

the value of the stock is taken at the valuation date which for a gift is the date of the gift so if the stock has appreciated that is taken into account

Non-farm assets that may count against this 80% are cash in hand, other non-agricultural property owned, personal car or other vehicles, investments/share portfolio?

as above, every asset is counted

How does one begin the transferal process? If a transfer is submitted and the Revenue decide that one hasn't reached the 80% threshold limit as above, can the transfer be withdrawn, assets recalculated to a higher value and then resubmitted? Where is the point of no-return?

the paperwork with regard to transferring land is generally done by a solicitor. If you proceed with a transfer and decide at a future date that you wish to reverse it you may be able to rescind the transfer but thats not a simple route to go down. get your assets in order before proceeding, consider transferring some assets to your wife if you have one

and take advice from your accountant

MfMan

Thanks MD. It's one of these situations where I think you have to make sure the answer is what you expect, so frame the question in certain terms, if you know what I mean!

Keepgrowing

MfMan wrote: »

Probably been covered umpteen times, but a couple of things I'm trying to figure out;

For the purposes of CAT tax relief, a transferee can benefit from this on the day after transferring if at least 80% of their assets are farm-related; I assume assets include land, buildings, farm machinery, current livestock. Do they also include farm entitlements / BPS payments? Also, is the farm dwelling house included?

For valuing land etc., a valuation from an auctioneer must be sought; how is livestock valued? Is it at date of purchase or can (presumed) appreciation in value be taken into account?

Non-farm assets that may count against this 80% are cash in hand, other non-agricultural property owned, personal car or other vehicles, investments/share portfolio?

How does one begin the transferal process? If a transfer is submitted and the Revenue decide that one hasn't reached the 80% threshold limit as above, can the transfer be withdrawn, assets recalculated to a higher value and then resubmitted? Where is the point of no-return?

You need to visit a good accountant. They will advise you and as someone else has posted you can also avail of business relief if you don't qualify for the 80% Ag relief.

You only go to your solicitor when you've got your ducks in a row from a revenue PoV.

Keepgrowing

MfMan wrote: »

Thanks for reply. Probably won't go down that route but is a VAT number required for business relief?

No