What are the conditions to qualify for Agricultural Relief?
You can claim Agricultural Relief from gift or inheritance tax (aka CAT) if you receive a gift or inheritance of agricultural property and you qualify as a farmer.
To qualify as a farmer, the value of your agricultural property must make up 80% of your total property value on the valuation date. This is called the ‘Farmer Test‘. This does not apply where agricultural property consists only of trees and underwood.
To qualify as a farmer you must either:
- farm the agricultural property on a commercial basis for at least six years from that date or
- lease the property to someone who farms the agricultural property on a commercial basis for at least six years from that date.
- you or the person you are leasing has an agricultural qualification (as listed in Schedule 2, 2A or 2B of the Stamp Duties Consolidation Act 1999)
- you or the personal you are leasing to farms the agricultural property for at least 50% of his or her normal working hours.
Subject to qualifying criteria and conditions
Any queries give me a call on 091 763817 or email me at oliver@taxreturnhelp.ie