Will I have to sell the family farm to pay CAT?

fairyribbon

My father passed away and left the family farm to my mother and a site for me. The site I was given is worth more than 330k so I’m maxed out on my inheritance tax relief. My mother has informed me she will leave the family farm to me but seen as I have maxed out my tax relief, will I have to sell it in order to pay the tax due or is there away around this?

KAMG

https://www.boards.ie/discussion/2058291187/will-i-have-to-sell-the-family-farm-to-pay-cat

First of all, condolences on the death of your father.

In relation to your query, are you sure the site is worth more than 330k. Seems odd.

There is no point giving further advice until this is established.

fairyribbon

Yeah it is , I’ve had it valued by an auctioneer

dh1985

If there is no house in it yet it could be valued as agricultural land. 330k for a site is crazy unless its in BallsBridge. Your solicitor should be able to advise. If you don't have one get one - a Good one.

Dslatt

Your best bet is to take to an accountant, farmland qualifies for various tax reliefs.

DBK1

https://www.boards.ie/discussion/comment/120443421#Comment_120443421

I’d be getting a second opinion from a different auctioneer. Unless that site is in the centre of New York or London there’s no way it should be valued at €330k.

sameoldname

Assuming that it's just regular agricultural land and isn't zoned for development, its not a site you were gifted, it's an entire field!

Inheritance limits for a farm are far higher than regular inheritance rules assuming you meet the criteria. You can search online for the info.

sugarman20

https://www.boards.ie/discussion/comment/120443601#Comment_120443601

Sites in Dublin easily go for that money. We were gifted a site in Milltown valued at 275k.

893bet

https://www.boards.ie/discussion/2058291187/will-i-have-to-sell-the-family-farm-to-pay-cat

When you get the farm you will need to ensure you qualify for agricultural relief which will reduce the value of it by 90 percent.

endainoz

https://www.boards.ie/discussion/comment/120443689#Comment_120443689

Yeah it would be recommended for them to do the green cert to avoid as much tax as possible. That price seems crazy high for a site though, maybe it's close to Dublin or something?

893bet

https://www.boards.ie/discussion/comment/120444133#Comment_120444133

If they ever intend to farm down the line that’s advisable.

If not they can lease the farm to an active farmer and qualify that way also I believe.

StevenToast

Please talk to a professional advisor.

You will be fine. There is nothing to be scared of.

To answer your question...

NO!