Will i have to pay Inheritance Tax?

[chippy]

Hi can anyone advice me please?My father has recently told me that he has me in his will.I have been told i will receive a 3 bedroomed House which sits on a 55 acre farm with 2 outhouses.The House and Farm are currently leased out to 2 separate people.My question is when i receive this property will i be liable for Inheritance tax and if so what would my options be? Any help most appreciated Chippy

 

[Ants09]

hi the exemtion for inheritance from parent to child is as follows

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A Son/Daughter €542,544 €434,000

so to answer your question it depends on how much you inherit ie if it is above or below the threshold as stated above.​

 

[Josvill2010]

If you could make it your family home eg principal private resident. In other words, you would need to have been living in the house for three years prior the transfer, and the recipient (you) dont have an interest in any other residential property plus keep the home for at least six years after the transfer. Then, it will be tax free.

Any tax must be paid within 4 months (20%-25% of taxable amount)
Regards,

 

[Breninio]

There is a limit on the amount of land that can pass free of CAT under the principle private residence exemption. I think it is 1 acre and therefore you would have an issue with the remaining 53 acres.

It may be possible for you to get agricultural relief in respect of the transfer. This would have the effect of reducing the market value of the property inherited by 90% for the purpose of determining the amount of CAT due. The agricultural releif is available if after taking the inheritance youqualify as a farmer. This will be the case if not less than 80% of your assets after taking the inheritance consist of agricultiral property as defined. Its probably worth a look.