Giving family home and/or farm to a 2nd/ 3rd cousin

[MarySmyth]

Can anyone advise re. rules for above- transferring property before death to relatives- what is tax implications.

 

[kennyb3]

In this case I would definitely suggest seeing a tax specialist or a least an accountant.

If you want to understand a bit look up CGT rules particularly business and/or farm relief and also the CGT rules on PPR (principal private residence).

Nobody on here should really tell you how to structure such a transaction without full facts.

If you want to discuss this further click on my username for my practice website.

Edit: whether it be us or someone else please do go see someone as this is a very significant issue.

 

[Joe_90]

Mary,
As kennyb3 says you should seek professional advice.

But there are a number of taxes to consider

Capital Gains Tax:
The gift of the farm is subject to CGT. There is a relief know as retirement relief which provides relief from CGT in certain circumstances.
http://www.revenue.ie/en/tax/cgt/leaflets/cgt1.pdf
Be aware of the need to get a CG50 Clearance Cert in certain circumstances.

Capital Acquisitions Tax:
The gift is subject to CAT. There is relief for Agricultural Assets where the assets of the donee are made up of more than 80% by agricultural assets. There is a 90% reduction in the value of the gift.
http://www.revenue.ie/en/tax/cat/leaflets/cat5.html

There is provision for an offset of CGT against CAT arising on the same event.

Stamp Duty:
The gift is subject to stamp duty. http://www.revenue.ie/en/tax/stamp-duty/non-residential-rates.html
There is relief for a young trained farmer. Where you have the relevant qualification and sign a certificate stating 50% of you time will be spent farming you get a full exemption.


C.
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