Tax - inheriting a farm - green cert etc.

rireland

I'm eventually going to inherit a farm/house. I'm not farming now but hopefully in future.

What will happen with tax etc.?

What should I do? Should I do the greencert?

Will money in the bank be taken into account etc.?

Cavanjack

rireland wrote: »

I'm eventually going to inherit a farm/house. I'm not farming now but hopefully in future.

What will happen with tax etc.?

What should I do? Should I do the greencert?

Will money in the bank be taken into account etc.?

Do green cert first, it can take a couple of years now I think. Try and get it transferred before you are 35 and You’ll pay no stamp duty. As regards capital gains etc. talk to an accountant.

dmakc

Do Green Cert think it's 3k now but you'll save more provided you're around 32 or less now.

rireland

"Also to qualify the beneficiary must be a ‘farmer’. This means the persons’ total assets after receiving the gift/inheritance must consist of at least 80% agricultural property."

Does this mean I have to just have a green cert or do anything more?

And also is it 80% of my total assets AFTER I get the property/land etc.? So let's say I have a house worth 500k, and I get land worth 500k, does this mean I don't get the benefit?

Or does this mean 80% of what I inherit needs to be agri land/property but it could include a house or woodland?

maidhc

rireland wrote: »

And also is it 80% of my total assets AFTER I get the property/land etc.? So let's say I have a house worth 500k, and I get land worth 500k, does this mean I don't get the benefit?

In a word, yes. A decent tax consultant will generally however be able to help you structure things so you can avail of the benefit. At times business relief is also an option.

The worst possible place to get advice on how to mitigate a 100k+ tax bill is probably here!

You need speak to a good farmers accountant. You could get caught for a huge tax bill unless you’re inheriting from a parent, but there are steps you could take now to reduce that bill.

maidhc

Deleted User wrote: »

You need speak to a good farmers accountant. You could get caught for a huge tax bill unless you’re inheriting from a parent, but there are steps you could take now to reduce that bill.

You could get caught with a huge tax bill. period.

revoke12

Do The green cert you have no stamp duty which is one bonus. also wil be able get grants etc also interitance tax is brought up thershold too. my advice would be do it part time even and before your 35.

mr.stonewall

revoke12 wrote: »

Do The green cert you have no stamp duty which is one bonus. also wil be able get grants etc also interitance tax is brought up thershold too. my advice would be do it part time even and before your 35.

Get the green cert done asap. A friend in work is doing it at the moment and says it's moving to a level 6 qualifiation which will add a lot more time to it.
Also there is a new business plan which has to be certified by only teagasc and it's a bit of work. Only gone through a transfer recently and second that get lots of good advice and get the ball rolling early.

p dogg

I'm actually going through something similar here except not as big a scale. My grandfather has left me 9 acres and a house. He died last year and the will was read recently. I done the green cert 5 years ago, but I never set up joint herd number or partnership with my father, nor did I set up my own herd number either. We were advised by our accountant that 'it wouldn't suit someone working full time like I am due to tax implications', so disappointingly I left it at that. My earnings would be around 30,000 a year, i have around 25 cattle between suckler cows and their calves in my fathers herd number. We farm around 200 acres in total, 100 ewes and around 180 cattle between sucklers their calves and yearlings. Our Sfp would be around 27,0000 per year. Just recently we were talking to our accountant about the inheritance tax I would be liable to pay and according to him agricultural relief will not apply as 'I am not a farmer', do any of ye know is this the case or not, even though I don't have own herd number can I still avail of ag relief. I am 38 years of age and we have yet to get house and land valued but it would be in the region of 160 to 200 k total. It's been on my mind quite a bit lately as to where I actually stand

revoke12

p dogg wrote: »

I'm actually going through something similar here except not as big a scale. My grandfather has left me 9 acres and a house. He died last year and the will was read recently. I done the green cert 5 years ago, but I never set up joint herd number or partnership with my father, nor did I set up my own herd number either. We were advised by our accountant that 'it wouldn't suit someone working full time like I am due to tax implications', so disappointingly I left it at that. My earnings would be around 30,000 a year, i have around 25 cattle between suckler cows and their calves in my fathers herd number. We farm around 200 acres in total, 100 ewes and around 180 cattle between sucklers their calves and yearlings. Our Sfp would be around 27,0000 per year. Just recently we were talking to our accountant about the inheritance tax I would be liable to pay and according to him agricultural relief will not apply as 'I am not a farmer', do any of ye know is this the case or not, even though I don't have own herd number can I still avail of ag relief. I am 38 years of age and we have yet to get house and land valued but it would be in the region of 160 to 200 k total. It's been on my mind quite a bit lately as to where I actually stand

When you have the Green cert done you should be classed as a "Qualified farmer" and I personally thought you would qualify for the relief? Im wondering is it due to age its going transferring over to you at 38 I know theres something about having the cert done before 35 and the transfer done before then to be entitled to the relief I could be wrong tho. You should def get something since you have the green cert I would of thought. I would speak to a solicitor or a agri advisor and see what they have to say and specify your case to them. Hope it gets sorted for you.

p dogg

Sfp is 27,000 and not 270000. Slight typo there

J.O. Farmer

p dogg wrote: »

Sfp is 27,000 and not 270000. Slight typo there

Around the inheritance tax if you have the green cert and inherit the farm assuming 80% of your assets are agricultural after inheritance you should be classed as a farmer provided you farm the land.

The house can count as an agricultural asset if it's on the land.

The solicitor dealing with probate should be able to confirm and make the necessary returns.

p dogg

Yes 80%of my assets will be agricultural after inheritance, and I do intend farming the land alongside my father as we are currently doing. While i am farming evenings weekends holidays etc, down on paper 'i am not a farmer' in the accountants words. It seems like a bit of a minefield, and is seriously frustrating. Thanks for all the replies