Inheritance tax - business relief

T

Tully

Guest
My only sibling died suddenly, almost everything was due to be left to him.
My mum owns a commercial property and rents out the shops but she also lives above these shops. I no longer live there. There is a pub licence attached to the property but it is not being used at the moment and she also owns a residential site without planning permission.

I have no idea how much all the above is worth but I'm guessing it will be over the inheritance tax exemption amount of €332,000.
From searching here and links given I've seen mention of businesses being exempt of 90% of its value when being inherited by a child of the deceased.

Does anyone know if that would apply in this case - where the property is definitely a business property, but it's being currently rented and in addition to this is being used as a home by my mum?
 
Hi, your in the wrong forum should be in taxation or askaboutbusiness. Mods move as appropriate.

Check this out http://www.revenue.ie/en/tax/cat/leaflets/cat4.html

You need to look at each property on its own merits. Residental property and rented commercial units.

The rented commercial units will not qualify for business asset relief unless they are transferred at the same time as the business. A rental property will not by itself qualify for business asset relief.
 
Exactly. Broadly speaking the relief applies to trading businesses/companies rather than passive investment activities such as renting.
 
Shoot.
Thanks all for quick replies.
Checking that link now.
 
You must log in or register to reply here.
Back
Top