Inherited farm from uncle

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ali1971

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I'm just looking for some advice. I inherited over 40 acres (family farm) from my uncle in law this year. Everything is going through probate currently. I did get some accountancy advice re agricultural relief and business relief otherwise I would have to pay CGT on all of it. We have assets so the agricultural relief doesn't look like an option.
I am currently running the farm with some help when I need it but I didn't grow up on a farm. (would have spent days off/holidays on it in my youth). I sold some of the cows and the yearlings earlier this year. There is a BPS payment on it too. It's all going to the REPs of my late uncle this year. I have just continued on as normal this year, the cattle are still out at the moment.
I know with the business relief I could rent some of it for 9 months of the year. I would have to keep it going as a business for 6 years. I know by selling some of the cattle I should replace it with an asset but I already have the machinery I need and don't want to buy any more. Is it doable? I still have a lot to learn. Everybody has been great with advice. I also work 30 hours a week, 3 longish days. I am mother to a 12 year old boy and he enjoys coming with me.
 
Thank you both for replying.
Yes, it is all three. I guess the most logical solution is to run it as a business (pay inheritance tax of circa 25K, otherwise I will end up with a tax bill of circa 95K, However I have little experience of running a farm business. I am currently just keeping receipts for everything. I also have to pay the legal fees etc. I didn't inherit any money so will have to use the savings I have to pay all this. Thanks for putting clarity on it for me
 
ali1971 said:
I wouldn't like to, the farm has been in the family for a long time!
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So what! If you had inherited the family Cessna would you feel obliged to learn how to fly it?

Farming at your scale is relatively safe money it's true. But even so it's absorbing a lot of cash flow near term.

At the same time it's like a very demanding hobby that eats up time and makes it hard to go on holiday.
 
@ali1971
There's are hundreds of people in the same situation as you. Ask around for a recommendation of a good farm accountant to work through the tax planning aspects with you, and requirements to preserve your BPS entitlements. Business relief can be extremely complex, as you've already discovered with the re-investment into assets aspect. You might be able to do some improvements work on the land or something with the money?

You can rent the land short term if you do it right without losing tax relief.
 
ali1971 said:
I wouldn't like to, the farm has been in the family for a long time!
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Which is presumably why your uncle entrusted it to you. I met some young farmers from Tipp recently, they were part of a farming organisation, I don’t recall the name but they were dedicated farmers and I’d say an organisation like that would be of benefit to you.
 
Thank you all for your replies. I could possibly do some improvement works and my uncle's accountant has been good with advice, also local Teagasc advisor. I must look into one of those organisations, see if there are any around here.
 
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