Land transfer

Google "consanguinity relief"

0% stamp duty under the above, for the process you need 2 solicitors one acting for your father and one on your behalf, your father's solicitor does the majority of the work....

Your checklist entails a 5 year business plan submitted to teagasc 180 euro for this, you also need the land valued by a auctioner and a document from them outlining the above 850 euro thereabouts

You need your greencert/birth-cert/proof of address etc and that's about it

You'll have no agricultural reliefs available so, bar whatever the gift limit is between a father/son you'll have a nice wallop of tax to pay depending on farm value/size

Could still potentially avail of Ag Relief. The main barrier might be satisfying the asset test.

Of course if your father where to go into nursing-home care, with the land still in his name the state/nursing home could have a claim on the land for the cost of his care, if his finances ment he hadn't the funds in the bank to cover his care, I'd be getting the transfer done on the above grounds alone

Green cert is not required but can help with tax.

Active farmer will help, livestock etc.

Valuation of your own assets vs the value of the farm required to reduce tax liability. Some calculation made 80% I think i.e. if your assets are less than 1/5th of the value of the farm then you have no tax liability, else you do and it's big.

Stamp duty also required.

I don't believe there's much difference financially between gift and inheritance.

I'm just at the latter end of mine.

The value of the farm @ 23% I think, something like 80k.

I could be wrong on the tax rate but it's on the full value of the farm.

Sheds, machinery, stock etc all added.

However there is an alternative, the 350k lifetime gift from parent to child. You can do it via this and not have anything to do with active farmer. It's just a gift from parent to child.

https://www.revenue.ie/en/gains-gifts-and-inheritance/cat-reliefs/agricultural-relief/what-are-the-conditions-for-agricultural-relief.aspx

Shed etc? Any cash or house etc that can eat into your life time allowance?

The 45 acres if poorer land and no other assets or cash being inherited might have you under the life time allowance. This would allow you take ownership with no inheritance tax or stamp at death of your father/mother.

however if the land is anyway decent and there are other assets at play your life time allowance will be blown and you will have 33% to pay on top.

Waiting until death to inherit then you need to look at the bigger picture of 1) overall life time allowance and the likely value of the assets. 2) Consider how “fair deal” could play out if ever needed for your parents.

Going for the transfer now has advantages and disadvantages.

While you can get Agri relieve of 90 percent, and stamp duty relief down to 1 percent. You have you dance a few hoops, have to actively farm, and meet the asset test.

Note for the asset test if you have a house worth 400k with your wife, but owe 200k mortage. Then you only have a 200k asset of which you own 100k. You would then need the farm valued at more than 400k to meet the 80 percent test.

There are different permutations that you need to write down and calculate their impact.

You can claim business relief on the farm assets and get the same 90% value reduction for CAT. Claim congansuity relief to get the stamp duty to 1% on the transfer value.

I went through this and basically you need to satisfy asset test which you either meet or you don't. 80 percent of assets after inheriting must be farm assets.

You can lease to active farmer to get relief if you are working full time.

To satisfy the means test all assets need to be valued. Wife’s money if in her name only is not relevant. 50 percent of joint accounts only….and plan ahead……I

Life time allowance means how much you can be gifted or inheritance from a parent. 335k is the number. Above that is taxed at 33%.

Do some reading. It’s not that complicated

In that case you pay the 1% stamp on the transfer and claim the 90% reduction for business relief. Should be no tax due bar minimal stamp duty on a transfer to you assuming you have not taken a previous gift from your parents

The value of the assets being transferred to you are reduced by 90% before capital acquisitions tax is calculated. You can receive a gift or inheritance up to 335k from a parent tax free. The 90% reduction means that if you get farm assets worth say 500k and if they qualify for either ag relief or business relief then for cat purposes they are valued at 90% less or 50 k in this example. You would pay no tax in this instance as you have not exceeded the 335k threshold

I don't know what you are asking me. It's maths. The asset test is one of the conditions for Agricultural relief - Ag Relief means Revenue will treat your inheritance as if it was 10% of the real figure if you satisfy all the conditions.

If you have 1m of non-ag assets today and you inherit 4m of ag assets tomorrow, then your total assets tomorrow will be 5m and 80% of those will be ag assets and you will pass the asset test.

If you have 1m of non-ag assets today and you inherit 3.9m of ag assets tomorrow, then your total assets tomorrow will be 4.9m and 79.59% of those will be ag assets and you will not pass the asset test.

OP, talk to an ag accountant and solicitors, ideally get quotes from all esp the solicitors for any work to be done. Your father's ones might do

They would have done this all before. There are prob local accoubtsnts out there but FDC and IFAC would be practices active in most areas if you want more well known

I have this process done in the last couple of years. You need to speak to a GOOD solicitor who know their stuff and an Agri Accountant. There is loads of way to reduce the tax bill for you and any impact to your father too. Every farm situation is different. I only ended up paying 1% tax.

As already mentioned - get talking early to your accountant and your solicitor and set out what you are planning. Get an assessment done on the total costs of the transfer including fees and any potential taxes so that you don't get any shocks after the event.

It usually makes sense to get a transfer done as a gift if taxes can be managed.

Also have a look at the Teagasc website for their Succession & Inheritance information - https://www.teagasc.ie/rural-economy/farm-management/succession--inheritance/

A useful 3-page summary here - https://www.teagasc.ie/publications/2022/transferring-the-family-farm---what-do-i-need-to-know.php

and a webinar outlining the taxes here (this is from 2020 but still fairly relevant) -