Inheriting father's farmland

Hi,

I was hoping someone could help me out with a question. I am currently working full time and have a degree in engineering (UL). My father is a farmer and plans to leave to farmland to me when he is gone. My question is would there be any tax on this? Also i have heard that if i don't have a farming qualification there may be increased taxs? I have looked into doing a course with Teagasc but i want to be sure i have to.

Can anyone give me advise on this as i am completly clueless.

Thanks in advance.

Re: Inheriting fathers farmland

The course with Teagasc is to get the young trained farmer relief from stamp duty which won't apply to an inheritance. You are sure that it will be on your father's death that you inherit? Sometimes people like to divest themselves of their assets before they die for example to qualify for a non-contributory pension etc. The YTF relief only applies to those under 35 and actively engaged in farming- you can read the conditions that apply on revenue.ie

In relation to Capital Gains Tax- again it will not apply if you inherit on your father's death. If there is to be a transfer during his lifetime specialist tax advice should be sought.

In relation to Capital Acquisitions Tax- inheritance tax or gift tax- the Agricultural Relief at the moment is available if more than 80% of your assets ( including what you are inheriting or being given) are agricultural. There are ways to inherit shares ( if a specific clause is inserted in the will) which you can use to buy more agricultural assets and still not lose the relief. This test has nothing ( at the moment) to do with whether you are actively farming or have agricultural qualifications. You'd need to have an idea of the value of the farm in order to see if you would be exposed to CAT ( and whether you've received any other gifts or inheritances ).

For really good tax planning- and it is always wise to plan ahead- consult a tax adviser now about future intentions and they will be able to give some good advice about whether it is better to transfer now or later or what way to structure it. It is well worth the fee.

Thanks for the reply Vanilla. Ya I guess want i should of asked was what are the tax implication for

a) inheritance when my father dies

b) inheritance while my father if alive

c) If i do the course to qualify for a YTF.

Is there any benifit to doing the course now and transferring the farm after i'm 35. (i am 24 years old).

Ya i agres the best thing to do is get professional advise, but i would liek to get my head around it too.

Help is much appreciated

a. No CGT, no Stamp Duty. Possible exposure to CAT (inheritance tax) depending on the value of the farm, and whether you qualify for agricultural relief ( which is the farmer test as above currently).

b. Possible CGT, Stamp duty unless you qualify for YTF relief, similar CAT except a small gift exemption of 3000.

c. Exemption from Stamp duty IF you qualify on the other conditions- which is to say that you must actually be farming ( a certain percentage of your time) and be under 35 etc- look up conditions on revenue.ie

YTF relief at present ONLY availabe to people under 35 at the date of the transfer.

All above just general. You and your father should really take professional advice.

Will do, thanks for the info