Farm Inheritance Tax Relief

Agricultural Property (land, pasture, woodland, crops, trees, farmhouses, buildings, livestock, bloodstock and machinery, or a payment entitlement) which are passed on as part of an inheritance enjoy some additional CAT reliefs.

Instead of the land being assessed for CAT purposes at its full market value, it is assessed at 10% of its value.

Again, be aware that this relief will be disallowed if the property is disposed of within 6 years of the inheritance/gift and partly disallowed if disposed of within 6-10 years. Also to qualify the beneficiary must be a ‘farmer’. This means the persons’ total assets after receiving the gift/inheritance must consist of at least 80% agricultural property.

The ‘80%’ test does not apply in the case of agricultural property consisting of trees and underwood i.e in which case you do not have to be a farmer before you receive the gift/inheritance.

GETTING PROFESSIONAL ADVICE

If you have a query about Inheritance Tax, you can get qualified expert advice from George Skelton, gskelton@rda.ie  He can also advise on other complex tax issues such as.

• Tax Planning & Consultancy
• VAT Advisory
• Transaction Structuring
• Tax Compliance
• Research & Development Tax Credits
• Company Restructuring
• Succession Planning