Agricultural Relief

[Gordon Gekko]

It seems that the deceased/donor will need to be a farmer too. Good in that it stops people gaming the system.

 

[rob oyle]

Michael O'Leary would be covered by this provision, as he subcontracts his farming role to others (and get periodic slots on Countrywide to reinforce his farming bona fides). The super rich will continue to use this measure.

 

[TheJackal]

Potential massive unforeseen issue here.

Husband, the active farmer, dies. No succession plan like many farmers so wife inherits.
Wife is not active farmer. Kids inherit from mother. Now cannot get Agriculatural Relief even if they are actively farming the land...

 

[tallpaul]

Potential massive unforeseen issue here.

Husband, the active farmer, dies. No succession plan like many farmers so wife inherits.
Wife is not active farmer. Kids inherit from mother. Now cannot get Agriculatural Relief even if they are actively farming the land...

This is not the fault of Government though. Up to farmers to have their affairs in order the same as everyone else.

 

[misemoi]

Does the surviving parent (no need to genderise it!) not have time to become an active farmer if they want to benefit from the relief before they pass on? What is the active farmer test? In reality a lot of farmer partners are actively farming anyway so it may not be a huge leap for them to satisfy requirements?

 

[chippengael]

Currently, the land can also be leased for a period of at least 6 years to qualify as an active farmer. So the surviving parent can lease the land to qualify as an active farmer.

 

[basilbrush]

land can also be leased for a period of at least 6 years to qualify as an active farmer

But you must also pass the "Farmer Test", which is that at least 80% of your assets are agricultural.

 

[Pension 2022]

Nothing about the Farmer Test in the press release

 

[basilbrush]

I was reminding people that in addition to the "active farmer test" (which can be satisfied by leasing out the land), beneficiaries must also pass the "farmer test" (at least 80% of assets are agricultural) to get agricultural relief. After thinking about it more, I don't think the "farmer test" would actually matter for the situation described, though, since the spouse doesn't need to use agricultural relief themselves (as they wouldn't have to pay CAT on the inheritance).

I don't know what happens if the spouse only lives for a short time after they inherit the land. As @tallpaul said, if a farmer wants their child to inherit the farm and they might qualify for agricultural relief then they should ensure that their will states this rather than allowing the complication of it possibly going to their spouse first.