In the first of our series on inheritance and gift planning we outline below one of the principal reliefs available to reduce the tax bill.
Agricultural Relief can provide an up to 90% reduction in the value of certain gifts or inheritances of agricultural property for CAT purposes.
The Relief is subject to some conditions, including (but not limited to):
1. The assets received must constitute ‘agricultural property’, which includes:
2. The beneficiary must satisfy the ‘80% agricultural property’ test i.e., the ‘farmer test’. To be regarded as a farmer:
3. The beneficiary must also be an ‘active farmer’. This can be met as follows:
Additional Points to Note
If you would like to discuss further planning please contact our team who have considerable expertise in this area.
Please note: The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation.
Warren & Partners are a boutique Irish tax and business advisory firm based in Ballsbridge, Dublin. Our experienced-team of tax advisors will create unique tax solutions for your specific business needs.