Farmer and taxation

Offaly Exile

Registered User
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10
Hi,

My brother died a few months and I am hoping that I can get a little tax advice to help his widow in beginning to deal with his affairs. I have some knowledge of tax but I will probably engage a tax adviser down the line.

He was a part time farmer who was in full time employment. As such he used his tax credits against his employment income.

He inherited the farm about 10 years ago.Income would have consisted of Dept of Ag. farm payments and some cattle sales. I suspect he never registered for tax as a self employed person.

Question 1. With regard to claiming capital allowances on farm buildings. If say the value of farm buildings was €50,000 when he inherited the farm can capital allowances be claimed over 7 years (15% 1-6 and 10% in year 7) and thus reduce taxable profits ?

Question 2. If it transpires that the taxable profits each year are such that he was not a chargeable person (less than €3,175 ?) could form 12s be filed for each year ? In such a scenario would interest be payable and would Revenue charge penalties ?

Thank you.
 
Question 1. With regard to claiming capital allowances on farm buildings. If say the value of farm buildings was €50,000 when he inherited the farm can capital allowances be claimed over 7 years (15% 1-6 and 10% in year 7) and thus reduce taxable profits ?
No, only investment in the past 8 years counts.

Question 2. If it transpires that the taxable profits each year are such that he was not a chargeable person (less than €3,175 ?) could form 12s be filed for each year ? In such a scenario would interest be payable and would Revenue charge penalties ?

I'd prefer to do Form 11s on ROS. Paper Form 12s are a pain and you're depending on Revenue to input their contents correctly, and issue assessments correctly.

I can't imagine earnings are sufficiently big to generate any amount of interest and penalties although your own accountant should be better able to advise on this.
 
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