CGT or Gift Tax

R

REZI

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Hi all,

I have the opportunity to inherit my parents farm. The value of the land is approx. 280K. At present I am farming the land since 2007. Could anyone tell me how much Capital Gains or inheritance tax I would be liable for? Thanks REZI.
 
Well,

The person who sells / gifts to asset is subject to CGT. If they are over 55 and have owned and farmed the land for 10 years or farmed the land prior to leasing it in the past 15 year they should qualify for Retirement relief. No CGT

You as the person receiving the gift will be subject to CAT. As the threshold parent to child is approx €440,000 you are under the threshold assuming you have not received prior gifts from your parents. You may also qualify for agricultural relief which would reduce the gift by 90%. To qualify for AR 80% of your assets have to be farm assets. No CAT

You will also be subject to Stamp Duty but if you are under 35 and hold a green cert then you get an exemption. No stamp duty.

There are various clawback provisions if the land is disposed of within 6 years of the claim of the reliefs.

Happy Days!
 
Thanks for that Joe.
Very helpful. I am 43 so stamp duty seens then likely to apply. Could you tell me how that will be calculated. Thanks REZI
 
Stamp duty over value of €80,000 is 6%. Consanguinity relief parent to child will half that.
Section 83B may also provide for an exemption when the parent claims Retirement relief. Check with your accountant to see which reliefs are available. Sorry S83B does not apply in the case of a gift only for farm consolidation.
 
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You use the term inherit. Inheritance implies passing on a death. On a death there is no CGT liability just CAT. The land is deemed to pass at market value at date of death.

John Conlon
 
If you don't qualify for agricultural relief (because your agricultural assets are less than 80%) you might qualify for business relief which broadly achieves the same result.
 
Rental property is investment property and does not qualify but you should seek professional advice specific to your circumstances.
 
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