Taking over farm question

kevthegaff

Heard a story not long ago, auld guy with large number of cows and land block had a lad helping him he wished to give the land to (non relative). Between CGT, CAT and stamp duty it would have came to a huge amount. what did he do?

RightTurnClyde

kevthegaff wrote: »

Heard a story not long ago, auld guy with large number of cows and land block had a lad helping him he wished to give the land to (non relative). Between CGT, CAT and stamp duty it would have came to a huge amount. what did he do?

They should get married!

kevthegaff

RightTurnClyde wrote:

They should get married!

On the money!

kevthegaff

What stamp duty do u have to pay when over 35?

Water John

Not sure if Rangler is up for that? But a good solution.

OverRide

kowtow wrote: »

In my case every time I take off a pair of milking gloves I pop them in a big jiffy envelope, along with the used filter sock.

You're on form today,was it the early start

rangler1

Water John wrote: »

Not sure if Rangler is up for that? But a good solution.

I'm sure he saved a lot of tax, but i'd imagine he's regretting not employing a young fit girl instead at the start.......

topaha

RightTurnClyde wrote: »

They should get married!

Brilliant idea!:)

kevthegaff wrote: »

What stamp duty do u have to pay when over 35?

1%.

Its 1% for U-35's aswell but if they have the Green Cert then they are exempt.

If they are U-35 at the time of the transfer but don't have the Green Cert then they must pay the stamp duty. However, provided they obtain the green cert within 4 years of taking on the land then they can claim back the stamp duty.

Again as i mentioned earlier, this is all aimed at getting the old farmers out of the game by putting incentives in there for younger people so that those younger people can go to their ould lads 'look will you sign this over to me so i can avail of.....' rather than 70+ or 80+ old fella dying and leaving it to his son who already around 50 and then him doing the same.

Bass Reeves

kevthegaff wrote: »

Heard a story not long ago, auld guy with large number of cows and land block had a lad helping him he wished to give the land to (non relative). Between CGT, CAT and stamp duty it would have came to a huge amount. what did he do?

RightTurnClyde wrote: »

They should get married!

No more than likly civil partnership. Marrige not necessary.

Being used in loads of cases to avoild capital aquisition tax. It has being used where two adults are living in same houses for years and the owner wanted to leave it to the person living with them. Or even to pass on a pension to a person dependent on you.

Henwin

sorry to gatecrash this thread but i have a quick query, my husband who is 35 is farming at home, his dad has it leased to him but is willing to transfer the farm when we can afford the fees, there is about 35 acres of good quality land as well as a dairy/parlour/slatted units etc and an old run down house that we hope to renovate some time, he has machinery too but my husband paid for these. Could anyone estimate how much it would cost to transfer over the farm and the house. My husband works it full time milking, we live away from the farm in a house that I own.

Limestone Cowboy

Henwin wrote: »

sorry to gatecrash this thread but i have a quick query, my husband who is 35 is farming at home, his dad has it leased to him but is willing to transfer the farm when we can afford the fees, there is about 35 acres of good quality land as well as a dairy/parlour/slatted units etc and an old run down house that we hope to renovate some time, he has machinery too but my husband paid for these. Could anyone estimate how much it would cost to transfer over the farm and the house. My husband works it full time milking, we live away from the farm in a house that I own.

Got a bill from Soliciter the other day for 1600 for the receiving end of a transfer of the land and a ruin of a house. Didn't get the one from the auld lads side yet but assuming it will be about the same or maybe a few hundred more if that's any help. I rang around and most gave me an estimate over the phone. I qualified for agricultural relief and stamp duty exemption aswell.

rangler1

Henwin wrote: »

sorry to gatecrash this thread but i have a quick query, my husband who is 35 is farming at home, his dad has it leased to him but is willing to transfer the farm when we can afford the fees, there is about 35 acres of good quality land as well as a dairy/parlour/slatted units etc and an old run down house that we hope to renovate some time, he has machinery too but my husband paid for these. Could anyone estimate how much it would cost to transfer over the farm and the house. My husband works it full time milking, we live away from the farm in a house that I own.

That's the ideal situation and would cost very little, if he has a green cert there'd be no stamp duty, if no green cert about €3000, solicitor charge could be another 3000, there'd be no Capital aquisition tax, the law really favours transfers to sns/daughters

Henwin

thanks for that, he has a green cert and attended agricultural collage, is it under 35 as in 34 and under or does 35 qualify too

rangler1

Henwin wrote: »

thanks for that, he has a green cert and attended agricultural collage, is it under 35 as in 34 and under or does 35 qualify too

Under 40 is now classified as a young farmer eligible for loads of perks, you should talk to teagasc, your solicitor and accountant as I wouldn't be sure, even having the farm leased qualifies you for stuff like 60% grants when you're under 40

galway1976

Red Sheds wrote: »

For OP, there are too many different views on the farm relief here for you. Best is get an accountant and solicitor to work it out for you in advance and then plan what you need to do to qualify for it. I went through the same in the last 2 years and there is an assets limit, I think its 80% of your total assets must be agricultural assets (e.g. land, machinery etc) after the transfer. I had to transfer a lot of assets away to qualify. Cant remember if the family home is included or not. I dont remember an income limit, unless its new as I would not have qualified there. There is a rule that you must spend at least 20 hours per week farming, in other words its a significant part of your working time, and any farm can absorb that amount of time. My advice, do this carefully and slowly and make sure everything is going to stack up before you do the transfer because you will have only one shot at that. Best of luck with it.

On the SFP I was able to get my aul lads as well with transfer of the hard number and was same age as you with no green cert. You could technically buy the entitlements from him also.

Thanks thats the best news ive heard yet. I am going to chat to a farming advisor ACA. It seems awful complicated.

galway1976

Well guys thanks for all the effort. I have worked helping my auld fellow on the farm most of my life and my Dad a typical Irish auld lad didnt want to let go and I didnt want to push it because he put everything into it since he was 16 when his father gave it to him even though it used to bother me a bit. My grandfather couldnt give a sh1t about the farm. I want to farm it and put my own mark on it and pass it on to one of my kids. I couldnt image not having the farm , but I want to do it right.
I appreciate all the time you guys put into the post it has put my mind at rest . Theres seems to be a fair bit involved and will cost a few quid, but not 40 or 50k which I thought initially. but heaven to me is a summers day sitting on a ditch watching the cattle grazing. Sad I know .

topaha

Henwin wrote: »

thanks for that, he has a green cert and attended agricultural collage, is it under 35 as in 34 and under or does 35 qualify too

rangler1 wrote: »

Under 40 is now classified as a young farmer eligible for loads of perks, you should talk to teagasc, your solicitor and accountant as I wouldn't be sure, even having the farm leased qualifies you for stuff like 60% grants when you're under 40

Under 40 is for Department of Agriculture initiatives. Doesn't apply to Stamp Duty.

Tax reliefs exemptions etc are Revenue/Department of finance items. Under 35 is the Young Farmer cut off here. Henwin, as your other half is already 35 he doesn't qualify. The transfer had to be before his 35th birthday.

Donegalforever

You are likely to get conflicting information on this subject from most lay-people.

I would make two suggestions:

1. Go along to your Department of Agriculture Office and ask the questions you would like answered. You should be able to get accurate answers there.

2. Go along to your nearest Citizens Information Office and seek advice there.
Any information you get will be free of charge.
If they do not know all the answers, they can find out for you.

I wish you every success in farming.