Inheriting Farm, Tax free inheritance .

Seawater

Hello

Is farmland covered under the 325,000 tax-free inheritance threshold.
Or is it only covered under Agricultural Relief?

Any help would be great.

namenotavailablE

To claim agricultural relief (essentially a deduction of 90% off the value of the agricultural property) you have to meet a number of criteria- these are outlined here.

Once the criteria are met, the value of the agricultural property is basically reduced by 90%. The remaining 10% is then used to calculate your CAT liability, which is where the threshold comes into play (€335000, if you're receiving from a parent).

An example: you inherit farmland worth €500,000 from a parent and meet the relevant qualifying criteria. You reduce the €500,000 by 90% to €50,000 and then use that value against the €335,000 to see what's taxable. Assuming that you have never previously received chargeable assets from your parents, you have no tax to pay as the tax free threshold of €335000 covers the taxable value of the land.

Seawater

Thanks namenotavailabl

Thats exactly what I wanted to know.