Novice question

lotsobear

Hi boardies, I inherited a small farm a few years ago from an uncle. I rented it out as I am working full time, dont live near it and have a young family. I was advised recently that for tax reasons I should consider getting into farming at some small level as if I ever wished to sell it on in the future it would reduce my tax liability. I grew up around farming but only have a passing interest in it (liked driving tractors and the machinery) . Due to my work schedule (sometimes nights) and the distance I live from the land I own im just looking for advice on any small scale agri I could get involved in that might suit my situation? Would I have to purchase cattle/sheep or are there any other aminals that are classed as agri...I love the countryside so it might grow on me as a part time job

Sugarbowl

Do you see yourself wanting to sell it on in the near future? If not, I’d stick at what you’re doing for the moment. Handy income coming in there off the rent and with a young family you need it all. If you did sell it, would the tax you pay match the time and cost of setting up a small enterprise just to avoid tax?

Hard Knocks

Best talking to an accountant
Leasing the land on a 5 year term maybe sufficient to Capital gains

Donald Trump

I'd imagine that they are getting confused with agricultural relief for inheritance tax.

You only have to rent it to someone who satisfies the conditions for the amount of time (6 years I think) in order for them not to be able to claw back the relief.