Good evening,
My remaining parent passed away a few months leaving a farm to both myself and sibling, no other dependents . The farm is owned by a company which may parents set up 50 years ago to purchase the farm. I don't know why? We have farmed it as a company and wish to continue to do so for the foreseable future. We don't qualify for ag relief as a result.
How ever we are facing a financial wipe out due to the accountant saying we do no not qualify for business relied as we, neither of us, never officially drew down a salary, and the tax bill means we may have to sell up. Both of us have bought livestock and equipment and the company owes us money . The previous accountant said there was no point having a salary when the company owes us money and we both have off farm income. We both work it as a suckler cow beef farm and buy livestock for finishing.
I have read the Capital Acquisitions Tax Manual Part 12 and there is no reference to salaries. The tax advisor wont discuss if we are eligible till this year company accounts are done and till he gets a list of assets from the solicitor. So we are meeting a new tax advisor next week . Extremely stressed!!
So my question is, are you disqualified form business relied if you don't draw down a salary?
Good nIght.
My remaining parent passed away a few months leaving a farm to both myself and sibling, no other dependents . The farm is owned by a company which may parents set up 50 years ago to purchase the farm. I don't know why? We have farmed it as a company and wish to continue to do so for the foreseable future. We don't qualify for ag relief as a result.
How ever we are facing a financial wipe out due to the accountant saying we do no not qualify for business relied as we, neither of us, never officially drew down a salary, and the tax bill means we may have to sell up. Both of us have bought livestock and equipment and the company owes us money . The previous accountant said there was no point having a salary when the company owes us money and we both have off farm income. We both work it as a suckler cow beef farm and buy livestock for finishing.
I have read the Capital Acquisitions Tax Manual Part 12 and there is no reference to salaries. The tax advisor wont discuss if we are eligible till this year company accounts are done and till he gets a list of assets from the solicitor. So we are meeting a new tax advisor next week . Extremely stressed!!
So my question is, are you disqualified form business relied if you don't draw down a salary?
Good nIght.