Inheritance tax planning.

mondeoman72

Hi folks.

Can anyone point me in the direction of any sites I can read, which can assist in taxation planning. I understand the difference between tax planning and tax evasion, it is planning I am interested in.

The situation in mind is a family inheritance of a house and farmland with a value of, I dont know, maybe 500k or 600k. The owner is in their 80s with one child, two grandchildren and a son in law.

The planning element is to try and minimise liabilites which will come in the future.

Many thanks.

namenotavailablE

For a general overview of applicable taxes, you should read the Capital Acquisitions Tax materials on revenue.ie:

https://www.revenue.ie/en/gains-gifts-and-inheritance/index.aspx

There are favourable reliefs for agricultural assets but have 'terms and conditions'. Details are available at:

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/agricultural-relief/index.aspx

Based on a gross value of 600k of agricultural assets and assuming that the recipient meets qualifying criteria, a 90% reduction applies, leaving 10% assessable. Depending on the recipient's available tax free amount, there may not be a tax issue.

Of course, prior to executing any plan, take professional advice.