S
saj
Guest
I am a 91 yr old gent with some land. I have been leasing the land since aquiring it from the will of my sister-in-law in 1992 ( 16yrs ago). I wish to pass the land to my niece before I die and wish to avoid paying CGT.
The transfer incurs a double taxation ie CGT for me on disposal of the land to my neice and CAT for her on its uptake. Because its the same event CAT can be wiped out but CGT has still to be paid. I do not wish her to be saddled with a large tax bill to pay (my CGT) so am looking to reduce this to nil by trying to attain "Retirement relief" status. If I qualify for this my CGT would be nil and thus only CAT would have to be paid. - you must pay one it seems ... She could qualify for agricultural relief by passing a "farmers test" When your total assets incl. the land amounts to over 80% you are technically a farmer and thus pay no CAT. anyone out there still following!!... might see if I can attain retirement relief based on what is below..
The land was always in my family, my twin inherited it from my father, and if he died before his 21st birthday then it was to become mine. my twin did die, but much later and passed this land to his wife in a marriage settlement. He died interstate. She willed the land to me. I worked the land in my youth and since my brother died until his wife died in 1983. It wasn't passed to me by the her executor until 1992. (I was 75 years old then).
The stipulation is that on leased land it has to have been worked before the leasing for a period of time. Although it was worked while my twin brother was alive and his wife, I did not own it until 1992. at that point I was too old to work it and at retirement age. Have I any chance of being accepted for retirement relief purposes so that I can pass my land onto my neice with a nil liability for CGT ??
as she is over 35 with little assets she may pass the "farmers test" and thus not have to pay CAT. She would then inherit the land tax free.
please advise on the former (CGT)
regards SAJ
The transfer incurs a double taxation ie CGT for me on disposal of the land to my neice and CAT for her on its uptake. Because its the same event CAT can be wiped out but CGT has still to be paid. I do not wish her to be saddled with a large tax bill to pay (my CGT) so am looking to reduce this to nil by trying to attain "Retirement relief" status. If I qualify for this my CGT would be nil and thus only CAT would have to be paid. - you must pay one it seems ... She could qualify for agricultural relief by passing a "farmers test" When your total assets incl. the land amounts to over 80% you are technically a farmer and thus pay no CAT. anyone out there still following!!... might see if I can attain retirement relief based on what is below..
The land was always in my family, my twin inherited it from my father, and if he died before his 21st birthday then it was to become mine. my twin did die, but much later and passed this land to his wife in a marriage settlement. He died interstate. She willed the land to me. I worked the land in my youth and since my brother died until his wife died in 1983. It wasn't passed to me by the her executor until 1992. (I was 75 years old then).
The stipulation is that on leased land it has to have been worked before the leasing for a period of time. Although it was worked while my twin brother was alive and his wife, I did not own it until 1992. at that point I was too old to work it and at retirement age. Have I any chance of being accepted for retirement relief purposes so that I can pass my land onto my neice with a nil liability for CGT ??
as she is over 35 with little assets she may pass the "farmers test" and thus not have to pay CAT. She would then inherit the land tax free.
please advise on the former (CGT)
regards SAJ
Last edited by a moderator: