Land Transfer- Tax Implications

Comic Book Guy

Hi all,

Just looking for some feedback from anyone who has recently gone through the process of inheriting land from their parents.

My dad has recently started the process of transferring the ownership of his land to me. I've talked to a few different accountants and an auctioneer and got different feedback on the overall bill i will be facing at the end of the process and at this stage I'm getting bamboozled by the whole thing.

On the issue of Stamp Duty I'll qualify for the 1% rate via Consanguinity relief. But I'm just trying to figure out the Capital Aquisition Tax implications. The home farm is due to be transferred from my dad to me but the value would be over the 335k threshold. One guy told me i would be paying CAT at a rate of 33% on every cent over this valuation which wouldnt be long running into a nice bit of money. However on reading the info on revenue.ie i would qualify for either Agricultural Relief or Business Relief which reduces the taxable value of the property by 90%. I'm trying to figure out where this 90% relief kicks in in relation to the 335k threshold. My wife and I also have our own house built on this block of land.

Any feedback would be greatly appreciated, Thanks.

893bet

https://www.boards.ie/discussion/2058237525/land-transfer-tax-implications

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/agricultural-relief/what-are-the-conditions-for-agricultural-relief.aspx

Read that!

Hardest bot to meet will likely be the 80 percent test.

What your house value? Minus what you owe via the mortgage if you have one

Any other assets? Cash? Shares etc?

What is the farm worth then roughly?

Mooooo

Talk to an ag accountant. You and your parents will need separate solicitors also. Are you under 35 and actively farming it along with having the green cert? Should qualify for ag relief if so but must remain farming it for 6 years or I think at least lease it to an active farmer. Total assets must be less than 80% of the value of the farm i think as well

Ag accountant is the first port of call anyway. We use FDC but there may be others local to you

893bet

The 90 percent relief is on the total value by the way.

assume farm is 1million. You owe. 10k stamp ie 1%.

Then agri relief kicks in and it’s brought down to 100k. So no CAT as it’s under your 335 allowance.

MIKEKC

https://www.boards.ie/discussion/comment/118790358#Comment_118790358

The 80% could be the hardest to meet if the farm is small or in an an area where land prices are low. (If they are low anywhere.