Inheriting a forest from my father

D

decotime

Guest
Hi,

Can anyone advise what is the best and most efficient way to transfer over a forest.

My father is open to all options and we would welcome any advice.

Thanks
D
 
Is he giving it to you while alive or leaving it to you in a will? Forestry qualifies for agricultural relief from CAT, you and your father should discuss the situation in detail with a solicitor and/or accountant to ensure that you can maximise tax advantages. There is not enough information in the post to comment on your individual situation.
 
He is willing to give it to me which ever way I can maximise my tax advantages. I have no other land.



Thanks
D
 
I'd just like to resurrect this query as we've not done anything about it yet.

My father is happy to go with the best option, whether this is giving it to me now or in his will. Obviously, the main aim is to take this over the easiest and cheapest way possible.

I have no other land and work a normal clerical job.

if you need me to be specific on any other areas, please ask as we would appreciate any steer we can get on this.
 
Note that you are unlikely to fulfill the conditionality of being a "farmer" for the purposes of availing of agricultural relief. You will be entitled to the normal parent/Child CAT threshold.
 
decotime said:
My father is happy to go with the best option, whether this is giving it to me now or in his will. Obviously, the main aim is to take this over the easiest and cheapest way possible.

.
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It's hard to ask you questions, forestry and rights in relation to same wouldn't be an area most people are familar with.

To do this right, you need the advice of a solicitor and a tax expert on this area. You have a job, why don't you pay for the advice of these two experts to find out what can and cannot be done. And to help others if you do get that advice please post it on here.

The worst thing to do is to do nothing and just talk about it with your father from time to time as time goes by. As do many families and nothing gets decided.
 
I think the starting point is to establish what the gift / inheritance is worth

Generally speaking its more tax advantageous to receive property as an inheritance rather than a gift. In an inheritance there is no capital gains tax implications for your father and no stamp duty implications for yourself. If the property has a value lower than 250,000 and you haven't previously received such an inheritance or gift, its unlikely that any tax will be payable at all.

In a gift situation, your father may be liable for capital gains tax and depending on the value of the property you may be liable for capital acquisitions tax. You map also be liable for stamp duty.
If your father qualifies for retirement relief under the CGT rules (which is
very likely in terms of what you have explained) and the property is valued at less than 250,000, then its possible that only stamp duty (at a reduced rate) will be payable

You should take advice on all of this and especially if the "property" is worth more than 250,000.
 
AFAIK, when transferring or inheriting forestry land, the value of the trees are not classed as having any value. The land the trees are planted on is the only part of the transaction that the Taxman will take notice of.
 
44brendan said:
Note that you are unlikely to fulfill the conditionality of being a "farmer" for the purposes of availing of agricultural relief. You will be entitled to the normal parent/Child CAT threshold.
Click to expand...

I thought that "being a farmer" for the purpose of qualifying for agricultural relief meant that 80%+ or more of your assets were agricultural in nature. Is there something I am missing?
 
As per my previous post, there are special rules for Forestry when Inheritance is in play. A qualified accountant or solicitor will be able to advise. The fact that forestry is treated differently does not play a part in agricultural relief.
 
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