Potential changes to Agricultural Relief

tbukela

I was reading the document on the Finance website about the proposed budget options under the EU/IMF bailout http://www.finance.gov.ie/documents/publications/other/2011/EU%20imf/EUimfJul2011.pdf and the bit about changes to CAT & CGT.
I was looking at the Revenue website and agri relief was worth 50% back in the early 1990s. Do people think that agricultural relief is going to be changed?

irishh_bob

tbukela wrote: »

I was reading the document on the Finance website about the proposed budget options under the EU/IMF bailout http://www.finance.gov.ie/documents/publications/other/2011/EU%20imf/EUimfJul2011.pdf and the bit about changes to CAT & CGT.
I was looking at the Revenue website and agri relief was worth 50% back in the early 1990s. Do people think that agricultural relief is going to be changed?

the state is not only a greedy pig , its now a starving pig which is searching desperatley for any loose change it can find anywhere , no sector of the economy will see favourable changes regarding taxation in the next budget , thats a certainty

The_Conductor

There were some changes made in the early 90s to Agricultural relief from CAT- which enabled any mortgages on other assets (such as residential housing not associated with farming) to be deducted from the non-agricultural holdings, before determination of a person's farming assets (which would then have to be 80% or higher) in order to qualify for farm relief..........

Farm relief would appear to be on the table- with FG representatives having to fight to maintain relief, as many promised in the last election, against labour representatives, who see it as just another relief that is on the table and fair game.

At the end of the day- the Irish government has signed up to reform all tax reliefs- of which farm relief is just one- and it is thought that all forms of inheritance tax- not just those associated with farming, could receive unwelcome attention.

Irishh_bob's comment is accurate- the government's cupboards are bare- there are few interest groups brave enough to stick their heads up to fight for tax reliefs- when local hospitals are closing, teachers are being fired and 1/3 of the public sector being let go- there really is a scramble on to see where money can be shaken from- and all forms of CAT, most notably inheritance tax, are viewed by many as some of the less painful options.

hurling_lad

The talk that I'm hearing seems to be saying that Agricultural relief will be brought back from 90% to 75% or lower in the budget, in line with the recommendations of the Commission on Taxation.

In practice, at a valuation of €8,000/acre (which I've been told is lowest valuation that the revenue would accept for my home place) and excluding Farm buildings, machinery & stock, this means that the acreage that could be inherited tax-free would go from 415 acres presently to 166 acres. That is a huge drop.

I'm sure my family is not the only one where this expectation has brought succession planning to a head. In our case, which involved me and my brothers having little or no interest in farming, this has resulted in me deciding to chuck in my ten-year-old accounting career (didn't have much interest in that either, mind!) and give dairying a go.

tweety11981

Hi, just in reply to hurling lad "In practice, at a valuation of €8,000/acre (which I've been told is lowest valuation that the revenue would accept for my home place)"

is this value due to a reason of location/quality of the land, just wondering how they can say its the lowest valuation

JohnBoy

the revenue arent completely stupid


if you try and take the piss with things like valuations then they might decide come pay you a visit to see what's under the matress!

tweety11981

Exactly!