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Farm sale and retirement(s598)

  • 20-03-2018 11:15pm
    #1
    kingchess
    Registered Users, Registered Users 2 Posts: 795 ✭✭✭


    I have my farm leased to my neighbour from 2015 under a 5 year lease,so rental income is tax free,..He is very interested in buying it now and is offering a price I am happy to sell at.....but I am worried about cgt, From reading the ros.ie site I seem to tick all the boxes ,have 5 year lease ,over 55 year old,etc but the site does not make clear if you have to wait for the 5 year lease to be finished before you sell ??? I will be meeting my accountant next week to find out more but over the phone he said I should have no CGT from his reading re having the 5 year lease in place,he rang back to say advice he got from a tax adviser was that I may be liable and he trying to get clarification from Revenue but this guy is out until next week.I suppose my question is-am I liable or not for Capital gains tax??


Comments

  • #2
    tanit
    Registered Users, Registered Users 2 Posts: 325 ✭✭tanit


    Check CGT reliefs: Disposal of a business or farm you might get a significant reduction in CGT liability if you qualify for the relief. But for something like this you need to speak with your accountant and have all the figures worked out with him: sale proceeds and the like to check how much of a reduction you can get.

    Regarding the 5 year lease I'm curious about where you got that there needs to be a 5 year lease for this relief when it applies to farming assets. Any chance you can post the link from Revenue to check? I found the info in Revenue, my guess is that you are going to have to wait for the lease to finish but I'm interested in the advice your accountant or anyone else have about this.

    Thanks :)


  • #3
    benjydagg
    Registered Users, Registered Users 2 Posts: 199 ✭✭benjydagg


    kingchess wrote: »
    I have my farm leased to my neighbour from 2015 under a 5 year lease,so rental income is tax free,..He is very interested in buying it now and is offering a price I am happy to sell at.....but I am worried about cgt, From reading the ros.ie site I seem to tick all the boxes ,have 5 year lease ,over 55 year old,etc but the site does not make clear if you have to wait for the 5 year lease to be finished before you sell ??? I will be meeting my accountant next week to find out more but over the phone he said I should have no CGT from his reading re having the 5 year lease in place,he rang back to say advice he got from a tax adviser was that I may be liable and he trying to get clarification from Revenue but this guy is out until next week.I suppose my question is-am I liable or not for Capital gains tax??

    Any update on this? I am 53 and also looking at finishing a 5 year lease early, subject to tax exemption.


  • #4
    kingchess
    Registered Users, Registered Users 2 Posts: 795 ✭✭✭kingchess


    My accountant and the buyers accountant were pretty sure I would be okay with regards to.CGT. but when he talked to Revenue it seems the 5 year lease will have to be completed ,and sale agreed when it runs out(.I suppose I am lucky that I did not sign up for a 15 year lease.)


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