Farm inheritance tax

Discussion in 'Other financial issues' started by farmerjim, Jan 27, 2011.

  1. farmerjim

    farmerjim Guest

    I have inherited the family farm from my father last year. It was worth €500,000. I qualified for agriculture releif. My aunt has told me that she intends to will me her farm that would be worth approx €600,000. Will i be able to get the full releif as a favourite nephew?
     
  2. Vanilla

    Vanilla Frequent Poster

    Posts:
    3,922
    Here's the favourite nephew conditions taken from revenue.ie website:

    The relief applies to a niece or nephew who has worked substantially on a full-time basis for the disponer for the period of five years ending on the date the disponer ceases to have a beneficial interest in possession in the business. The relief will only apply to assets used in connection with the business. Note that farming is a business for the purposes of the relief. The niece/nephew must be a blood relation. The relief does not apply to a niece/nephew-in-law. In order to qualify for the relief, the beneficiary must have worked a minimum number of hours in the disponer’s business, i.e.

    • 15 hours per week in a small business, i.e. a business carried on exclusively by the disponer, the disponer’s spouse and the nephew/niece.
    • 24 hours per week in a larger business, i.e. where there are other employees.

    This relief is currently available but coming up to the last budget there were ominous predictions about this and agricultural and similar reliefs being cut/abolished in the future. We cannot predict what reliefs will be in place when your aunt dies.
     
  3. farmerjim

    farmerjim Guest

    Thanks for that vanilla