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Agricultural Relief

  • 01-03-2017 8:54pm
    #1
    GoldFour4
    Moderators, Sports Moderators Posts: 5,042 Mod ✭✭✭✭


    Hi all,

    Quick question in relation to ag relief. Say someone qualifies for this and MV is reduced by 90%. Can the remaining amount be exempt from tax if it within the persons allowable gift limit?

    I.e daughter received land of €1m from mother. With relief it is reduced to €100k.

    Is the €100k exempt from CAT if the child has not already used their €310k threshold?


Comments

  • #2
    barneystinson
    Registered Users, Registered Users 2 Posts: 4,685 ✭✭✭barneystinson


    malistheman wrote: »
    Hi all,

    Quick question in relation to ag relief. Say someone qualifies for this and MV is reduced by 90%. Can the remaining amount be exempt from tax if it within the persons allowable gift limit?

    I.e daughter received land of €1m from mother. With relief it is reduced to €100k.

    Is the €100k exempt from CAT if the child has not already used their €310k threshold?

    Yes that's exactly how it works.


  • #3
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭Heisenburg81


    malistheman wrote: »
    Hi all,

    Quick question in relation to ag relief. Say someone qualifies for this and MV is reduced by 90%. Can the remaining amount be exempt from tax if it within the persons allowable gift limit?

    I.e daughter received land of €1m from mother. With relief it is reduced to €100k.

    Is the €100k exempt from CAT if the child has not already used their €310k threshold?

    Also to preserve more of the threshold you can deduct any stamp duty paid and also use the small gift exemption.


  • #4
    dogsears
    Registered Users, Registered Users 2 Posts: 535 ✭✭✭dogsears


    Heisenburg81 wrote: »
    Also to preserve more of the threshold you can deduct any stamp duty paid and also use the small gift exemption.

    SGE yes but note the following from Revenue website in relation to deductions of costs -

    "Given that the full market value of the agricultural property is reduced by 90% in order to arrive at the agricultural value, any liabilities, costs and expenses properly payable out of the property and any consideration paid for the property must be similarly scaled down before being deducted from the agricultural value."


  • #5
    Heisenburg81
    Closed Accounts Posts: 322 ✭✭Heisenburg81


    dogsears wrote: »
    SGE yes but note the following from Revenue website in relation to deductions of costs -

    "Given that the full market value of the agricultural property is reduced by 90% in order to arrive at the agricultural value, any liabilities, costs and expenses properly payable out of the property and any consideration paid for the property must be similarly scaled down before being deducted from the agricultural value."

    Yes, same for business relief on shares/property where 90% relief calculated on taxable value. Works the same just calculated differently. Agri relief 90% reduction in market value and 90% reduction in costs.


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