Agricultural Relief: valuable tax exemption in Capital Acquisitions Tax law re gifts and succession

[@terrygorry]

Please note: For gifts and inheritances taken after 1 January 2015, where the valuation date is also on or after 1 January 2015 you must: farm the agricultural property on a commercial basis for at least six years from that date or lease the property to someone who farms the agricultural property on a commercial basis for at least six years from that date. The above requirements are known as the 'Active Farmer Test'. Additionally, the person receiving the gift or inheritance, or the person leasing the property must either: have an agricultural qualification (as listed in Schedule 2, 2A or 2B of the Stamp Duties Consolidation Act 1999) or farm the agricultural property for at least 50% of his or her normal working hours.

[@barry-gb4up]

Terry the real sauce are trusts the management and operation maybe not so, but it is essentially a work around covering all assets

[@adamwaters8073]

Top class, Thanks Terry !

[@texashsad]

Gorgeous gorgeous countryside, and a very handsome picture, Mr. Gorry! You are indeed a solicitor for every circumstance! 😊

[@andrewmellon5072]

You can leave or transfer land, buildings, farmhouse, stock and working capitial to the valuation, by auctioneer, to value of 3.5 million to each child tax free. I suspect now the benificary must have a green cert and cannot sell for some years. There is also reduced stamp duty. If the donar has been farming and owning the land for ten years and is over 55 there is no capital gains on the generally very large capitial gains. In the past the Land Commission had to give premission for land sales. I think now something like it should be formed again or we will end up, all over again with huge areas of land belonging to a small number of people instead of family farms. The bloodstock industry pays no income tax and they are some of the biggest land buyers.

[@bluegtturbo]

Sadly it's not quite that simple...

[@andrewmellon5072]

@@bluegtturbo I am telling my experience of about eleven years ago, I had farmed land for 30 years plus and the receiving children had no assets. On another point I always wonder why people are afraid to use their name and hide behind phrases like bluettubo.

[@boradley601]

The son or daughter also needs to complete a green cert or fetac level 6 agri course.

[@terrygorry]

No, they don’t. They can lease the land to an ‘active farmer’.

[@ciaransweeney4010]

Hi Terry if a brother in law leaves a farmhouse and farm to his brother in law. Who hasn't to this date farmed. Can the brother in law avail of the Agri relief? Has no green cert and hasn't farmed before. Prior to his brother in law death i think the farm was leased and i think it will now be leased again or is still continued to be leased currently. Brother in law is 65 and owns his own house. Thanks Terry

[@davejmanning544]

Great footage as always Terry.

[@snishuilleabhain1858]

Interesting topic, a major factor in the increase of land prices and land acquisition. Would using a home or part of a home for Airbnb or renting the property have any tax implications in the case of imheriting or gifting that property thereafter? Would you mind doing a video on this please?

[@FarmerVP]

Could you please do a video on benefits to handing over agricultural assets before the person turns 36..

[@eamonnleonard9162]

Hi Terry, if a father wants to pass on a farm to his daughter,and we will say the farm is valued at 600.000 euro, and there is a house on the farm valued at 300.000 euro I take it that the house will be valued separately, that only the land will get the relief. But then the land value would be reduced to 60.000 euro, so that would leave the house at 300.000 plus the 60.000 total 360.000 of this total 335.000 can be gifted tax free leaving a bill of 25.000 on which to pay CAT provided the recipient farmed the land or leased the to a working farmer for six years, and of course all of this is subject to the value of the property they are receiving making up more than 80 per cent of their total wealth. Am I right or wrong in what I have written.

[@johnscales206]

Good question.

[@andrewmellon5072]

Unless the rules have changed. If the house is the farm house it valued as agricultural rate, the stock, machinery and working capitial are also included. I had 2 farms, with farm houses on them, I gave them to different children and got ag rate. Check your own capitial gains but if over 55 and farmed the land for previous ten years I think you are OK. You can't have been letting it on 11 month. I may be out of date I did it over 10 years ago. So get advice. I got premission to live in houses for my life time. If your daughter gets divorced it can be a problem.

[@eamonnleonard9162]

​@@andrewmellon5072Thank you for your response, it is helpful, and I appreciate you taking the time to respond.

[@bluegtturbo]

What if I want to leave my (leased out) farm to my daughter in England. If she continues to lease it out will she still be exempt from both UK and Irish tax??

[@pauls.2526]

I wounder dose the recipient of such land need to have a green cert. or equivalent agricultural qualification.🤔

[@terrygorry]

For gifts and inheritances taken after 1 January 2015, where the valuation date is also on or after 1 January 2015 you must: farm the agricultural property on a commercial basis for at least six years from that date or lease the property to someone who farms the agricultural property on a commercial basis for at least six years from that date.

[@pauls.2526]

@terrygorry Nice one, Terry, thank you.

[@bobokeeffe4036]

With many farmers going Limited company how does this work when availing of the tax exemption

[@terrygorry]

@@bobokeeffe4036 Who owns the land? The farmer or company? It is likely that there is only a trading company but you need to check

[@official-tmo5232]

I think the recipient needs the green certificate??

[@terrygorry]

For gifts and inheritances taken after 1 January 2015, where the valuation date is also on or after 1 January 2015 you must: farm the agricultural property on a commercial basis for at least six years from that date or lease the property to someone who farms the agricultural property on a commercial basis for at least six years from that date.

[@finbarrnangle6794]

I will have to pay full33% cat on agriculture land

[@finbarrnangle6794]

Only if children are farmers.

[@olivercoleman930]

Well there's an unfair short cut those children can do green cert on line with little effort if they have a diploma or degree of any sort dosnthave to be agri or science related...

[@AbcdEfgh-zp1sn]

Its absolutely ridiculous profitable dairy farmers have this exemption..they recieve grants to builds sheds then pay no commercial rates then an exemption to pass to their kids .

[@johnearle6667]

Business owners also can avail of similar relief on the transfer of business or business related property

[@AbcdEfgh-zp1sn]

​@@johnearle6667 But most family farms are not held as a business entity yet they get an exemption that no other member of society can enjoy .its a joke.

[@AbcdEfgh-zp1sn]

Farmers should pay inheritance tax the same as everybody else .

[@johnearle6667]

Well the day you have no food you might not think it’s a joke

[@Concernedcitizen89]

What food are irish farmers producing? Other than milk.and beef​@@johnearle6667

[@ciaransweeney4010]

Hi Terry if a brother in law leaves a farmhouse and farm to his brother in law. Who hasn't to this date farmed. Can the brother in law avail of the Agri relief? Has no green cert and hasn't farmed before. Prior to his brother in law death i think the farm was leased and i think it will now be leased again or is still continued to be leased currently. Brother in law is 65 and owns his own house. Thanks Terry