Advice needed re CGT and renting of family farm.

S

szlb

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Need some help/advice

My Dad inherited the family farm and farmed it all his life, he took early retirement and signed up to the 10 year early retirement scheme where he rented it for 10 years, He then passed away in 2010( still within the 10 years) and the land was passed onto my mam, when the 10 year period was up she decided to continue renting .She is now considering selling but is worried about the amount of CGT she will have to pay? Having spent hours on revenue and similar sites im very confused as to what if any relief she can claim,

Can she claim retirement relief even though the land had been rented to someone else to farm on for the past 11 years ?

There was no purchase price as it was passed on so would she have to pay CGT on the full sale price?

Any Help or advice would be appreciated

Thanks
 
Well,

If your mother inherited the land on the death of your father then she acquired it at market value on the date of death.

So if she disposes of it at a similar value then there is no CGT due.

You need to be sure that she did have any interest prior to his death. You need professional advice.
 
Thanks,

Do you mean once the land deeds ect were solely in his name and then transferred to hers she will be ok or at least only pay a small amount

If the land was origionally in both names then she will have to pay on the full sale price?
 
Transferred on death is the important point.

If she owns 1/2 then she pays CGT her half after indexation.
 
Ah ok I think I follow, Thank you

Her solicitor told her she would have to pay full CGT on It and I knew that couldn't be right
 
szlb said:
Ah ok I think I follow, Thank you

Her solicitor told her she would have to pay full CGT on It and I knew that couldn't be right
Click to expand...

Statements like this illustrate exactly the reason why trying to get advice about complex issues on internet forums is a bad idea -

"her solicitor told her" - so you have this 2nd hand from an elderly lady with no understanding of CGT?

"she would have to pay full CGT on it" - what is full CGT??
 
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