Inheritance Tax Agricultural Relief

mc_teo

Hi all,

It says here that to be eligible for Agricultural Relief from Inheritance tax, you only need for 80% of your assets after receiving to be farm assets. No mention of green cards or any other qualifications. Does anyone know if this is the case?

(I am not a farmer, but my dad has some agricultural land he wants to leave me, and just wondering what are my options.)

Thanks

4odh4n

depends on what you are planning to do with the land, the pdf document on the page you linked called "Guide to Farming Taxation Measures Contained in Finance Act 2014" gives a bit more detail... i.e. requirements if you are going to farm the land or if you are going to lease it out. i took over our farm a few years ago and I am farming it. i got the green cert to be eligible for grants etc going forward, I also needed it to reclaim the stamp duty of 1% that had to be paid on the value of the property.

best thing is to get some professional advise as everyone's case is different!

lakill Farm

4odh4n wrote: »

depends on what you are planning to do with the land, the pdf document on the page you linked called "Guide to Farming Taxation Measures Contained in Finance Act 2014" gives a bit more detail... i.e. requirements if you are going to farm the land or if you are going to lease it out. i took over our farm a few years ago and I am farming it. i got the green cert to be eligible for grants etc going forward, I also needed it to reclaim the stamp duty of 1% that had to be paid on the value of the property.

best thing is to get some professional advise as everyone's case is different!

stamp duty, currently, is only paid if its transferred before death. if its inheritance there is no stamp duty

50HX

nothing to do with green certs etc

to be on the safe side aim for 81% min if you can to keep the revenue at bay -

the biggest catch for some is that it must remain as agri land for 6 years from the date of transfer

mc_teo

50HX wrote: »

nothing to do with green certs etc

to be on the safe side aim for 81% min if you can to keep the revenue at bay -

the biggest catch for some is that it must remain as agri land for 6 years from the date of transfer

Renting it out for the 6 years is fine too, yeah? It's rented at the moment, so would just be continuing that.

rangler1

mc_teo wrote: »

Renting it out for the 6 years is fine too, yeah? It's rented at the moment, so would just be continuing that.

The land must be leased for 6 years and the lessee has to qualify.....

''Measures contained in the 2014 Finance Act

In addition to the existing conditions, the following conditions also apply to gifts or inheritances taken on or after 1 January 2015 where the valuation date also arises on or after 1 January 2015.

The beneficiary must:

Farm the agricultural property for a period of not less than 6 years commencing on the valuation date or
Lease the agricultural property for a period of not less than 6 years commencing on the valuation date. The agricultural property may be leased to a number of lessees as long as each lease and lessee satisfies the conditions of the relief.
In addition, the beneficiary (or the lessee, where relevant) must:

Have an agricultural qualification (a qualification of the kind listed in Schedule 2, 2A or 2B of the Stamp Duties Consolidation Act 1999) or
Farm the agricultural property for not less than 50% of his or her normal working time.
The agricultural property must also be farmed on a commercial basis and with a view to the realisation of profit''.

nhg

Just a quick question...

I inherited a family farm in 2012 and I am farming it solely in my name since (availed of Agricultural Relief).

I know that the ownership of the land has to stay solely in my name until end of 2018 but has the farm to be farmed solely in my name for the 6 years as well or can it be jointly farmed in both my husbands & my name (and can I add his name to my herd number).

My husband is farming it full time, I work off-farm part-time as up to now we have been investing everything back into the farm to enhance it.

TIA...

lakill Farm

nhg wrote: »

Just a quick question...

I inherited a family farm in 2012 and I am farming it solely in my name since (availed of Agricultural Relief).

I know that the ownership of the land has to stay solely in my name until end of 2018 but has the farm to be farmed solely in my name for the 6 years as well or can it be jointly farmed in both my husbands & my name (and can I add his name to my herd number).

My husband is farming it full time, I work off-farm part-time as up to now we have been investing everything back into the farm to enhance it.

TIA...

So moving to partnership from sole trader , where your still on herd number. Cant see that been an issue.

Bigger concern if they did the hours worked per week on the farm test, but I haven't see that used in practice.

Gman1987

For the 80% agriculture property rule would anyone know do they request an up to date valuation on your non agriculture property or would a valuation for the mortgage (3 years ago) be sufficient? Also lets say you are showing €80 equity in your house, if you are married can you declare just €40k equity for purpose of agricultural relief? (house is own jointly) Likewise for savings held jointly?

nhg

Ger1987 wrote: »

For the 80% agriculture property rule would anyone know do they request an up to date valuation on your non agriculture property or would a valuation for the mortgage (3 years ago) be sufficient? Also lets say you are showing €80 equity in your house, if you are married can you declare just €40k equity for purpose of agricultural relief? (house is own jointly) Likewise for savings held jointly?

Think it's a current valuation that would be required. Anything jointly owned - it's just your share that's taken into account.

Gman1987

nhg wrote: »

Think it's a current valuation that would be required. Anything jointly owned - it's just your share that's taken into account.

Thanks for the reply, thats what I was thinking myself. Will need to get in contact with the accountant so to work out a plan.