Gift tax applies to a lifetime transfer.
Inheritance tax applies to a transfer on death. Returns must be filed by 31 October 2017 on any gift/inheritances received in the year to 31 August 2017.
The thresholds that a person can receive tax-free are as
follows:
Class – Parent €310,000Class B – Relative €32,500Class – Non-blood relative €16,25020 Annual exempt amount:
A farmer can receive by way of a gift an amount of €3,000 from any person in a calendar year without affecting his/her threshold. No gift or inheritance tax applies between spouses.
21 Certain medical expenses:
A gift or inheritance taken exclusively to discharge medical expenses of a permanently incapacitated individual is exempt.
22 Stately houses /works of art/
Gardens:
If you own a property of national, scientific or artistic interest and reasonable access is given to the public during the three years prior to the gift or inheritance tax relief may apply.
23 Agricultural relief:
This relief reduces the value of the asset you are receiving by 90%. If you receive €2m of agricultural property you will only be taxed on €200,000 i.e. 10% of its value. Ensure you meet the conditions to qualify for this relief. Beware of clawback of the relief if you fail to satisfy the conditions. The recipient must be an ‘active farmer’ to receive this relief.
24 Business relief:
If you do not qualify for agricultural relief, business relief may be available. It applies to transfer of a business or part of a business. It does not apply to an individual asset. It reduces the value of the asset by 90%.
25 Favourite nephew-niece relief:
In certain circumstances, a nephew or niece and who has worked on a full-time basis on the farm will be deemed to qualify. If you qualify you would be treated as a child for the purposes of the tax free amount thresholds.
26 Free use of property:
If you have use of property for free or below market value, be aware that this amount is regarded as an annual benefit and could erode some or all of the amount you can get tax-free.
Read more from our focus on tax saving tips
Introduction: the top 50 tax saving tips for farmers in 2017
Click here for tips on VAT
Click here for tips regarding Stamp Duty
Click here for tips regarding Capital Gains Tax
Click here for tips regarding Income Tax
Click here for tips regarding Corporation Tax
Gift tax applies to a lifetime transfer.
Inheritance tax applies to a transfer on death. Returns must be filed by 31 October 2017 on any gift/inheritances received in the year to 31 August 2017.
The thresholds that a person can receive tax-free are as
follows:
Class – Parent €310,000Class B – Relative €32,500Class – Non-blood relative €16,25020 Annual exempt amount:
A farmer can receive by way of a gift an amount of €3,000 from any person in a calendar year without affecting his/her threshold. No gift or inheritance tax applies between spouses.
21 Certain medical expenses:
A gift or inheritance taken exclusively to discharge medical expenses of a permanently incapacitated individual is exempt.
22 Stately houses /works of art/
Gardens:
If you own a property of national, scientific or artistic interest and reasonable access is given to the public during the three years prior to the gift or inheritance tax relief may apply.
23 Agricultural relief:
This relief reduces the value of the asset you are receiving by 90%. If you receive €2m of agricultural property you will only be taxed on €200,000 i.e. 10% of its value. Ensure you meet the conditions to qualify for this relief. Beware of clawback of the relief if you fail to satisfy the conditions. The recipient must be an ‘active farmer’ to receive this relief.
24 Business relief:
If you do not qualify for agricultural relief, business relief may be available. It applies to transfer of a business or part of a business. It does not apply to an individual asset. It reduces the value of the asset by 90%.
25 Favourite nephew-niece relief:
In certain circumstances, a nephew or niece and who has worked on a full-time basis on the farm will be deemed to qualify. If you qualify you would be treated as a child for the purposes of the tax free amount thresholds.
26 Free use of property:
If you have use of property for free or below market value, be aware that this amount is regarded as an annual benefit and could erode some or all of the amount you can get tax-free.
Read more from our focus on tax saving tips
Introduction: the top 50 tax saving tips for farmers in 2017
Click here for tips on VAT
Click here for tips regarding Stamp Duty
Click here for tips regarding Capital Gains Tax
Click here for tips regarding Income Tax
Click here for tips regarding Corporation Tax
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