Help, have to pay Capital Acquisitions Tax before October...I don't have a cent

feirmeoir101

I'd appreciate anyone's insight on this, I recently inherited a farm of land, according to my calculations taking into account the parent child threshold of 335,000 and the value of the land, I'll have to pay approx 20,000 in CAT to revenue.

Their info states that if you receive it before Sept 1st you have to pay the CAT by Oct 31st of the same year!

The grant of probate came to the solicitors in the last week in August so apparently that's the date set in stone.

It's poor land that even if I were to sell some, would take a long long time to find a buyer and get cash for it.

It would take years of farming to turn a profit.

I don't have thousands lying around I can hand over and I doubt any financial institution will loan me money.

I have a reasonably good job but every cent goes on the cost of living.

Renting the land isn't an option as I'd have to significantly invest in fencing.

If I don't find a lot of cash very soon, I'll start to accumulate interest and penalties and be in debt to Revenue for a long long time.

I don't know what to do

9320

There's agricultural relief available if your user name is to be believed.

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

Are you in the IFA you should be able to get some Tax Advice and your solicitor should also be able to advise.

MikeCairo78

You cold just disclaim the inheritance and then you are no liable for the CAT - you want have the land either, but from what you say above, why would you want it

steinbock123

https://www.boards.ie/discussion/comment/119585101#Comment_119585101

Is that a thing??

Never heard of that before.

MikeCairo78

https://www.boards.ie/discussion/comment/119585139#Comment_119585139

Of course, because someone bequeaths something to you, doesnt mean you have to accept it(especially if you are left with a large tax bill for something you have no requirement or use or unable to liquidate to pay the bill)

https://www.revenue.ie/en/gains-gifts-and-inheritance/completing-gift-or-inheritance-tax-return-it38/disclaimer-benefit.aspx#:~:text=If%20you%20receive%20an%20inheritance,or%20taken%20possession%20of%20it.

feirmeoir101

Thanks for the advice, I do want the land and hope to eventually use it and make money from it but my issue is the timeframe to come up with a large amount of cash. I do understand it's a valuable asset on paper but it can't produce thousands in year, let alone a month or 2.

Even with the best of intentions, I just don't know how I can source that within 2 months.

I don't know if I can claim the agricultural relief as it would be hard to prove I spend 50% of my time farming.

I'm just shocked at the timeframe involved.

SureYWouldntYa

I'm surprised your solicitor didn't sit on it to allow it to go into August, or at least speak to you about it

It's probably worth getting onto the IFA or similar as mentioned above, you won't be the first in this situation and they should have the proper advice for you

You say banks wouldn't give you a loan, I'd be surprised if you're not able to use the land itself as collateral against any loan

Packrat

Plenty lads will rent the land unfenced... especially if there's entitlements with it.

Dairy boys are giving nice money for land they never see or put an animal on to keep their nitrogen derogation.

Farming now on bad land is 90% a paper exercise.

You might be pleasantly surprised if you speak with a clever agri-advisor.

For example if you're under 40 you're a "young farmer" and will qualify for higher rates of everything.

You have a very valuable asset which is rentable or from which you can draw a nice sideline off without doing too much.

Be careful of sharks and get proper professional advice (not Teagasc)

Your immediate problem is minor, they won't chase you for it for a little while and any interest or penalties wont be horrific and you can use that time to get that land and entitlements working for you.

Calm down and stop panicking.

Ask these questions in the farming forum with a little more detail provided and I bet you'll come away a happy man/woman.

Plenty people who know nothing about actual farming making nice money out of drawing subs but it's complicated and over there people will have all gone through this already.