Farmer standing by a fence in a green field

Farming and succession

Farm transfers and succession.

Handing a farm to the next generation is a legal transaction, a tax event and a family conversation all at once. Done well, the reliefs available can remove most or all of the tax. Done badly, or late, they can be lost. We work with your accountant and agricultural adviser so the three parts line up.

Talk to us about a transfer Try the CAT calculator

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At a glance

Each relief has conditions on age, qualifications, timing and what happens to the land afterwards. The order and the date of the transfer can decide whether they apply.

01Agricultural relief90 per cent reduction in the value for CAT

02Farmer test80 per cent of assets agricultural after the gift

03Young trained farmerStamp duty relief to age 35 with the qualification

04Retirement reliefCGT relief for the parent transferring

The steps

How a farm transfer runs.

Start the conversation two or three years before the transfer. The reliefs reward planning.

The family conversation

Who is taking on the farm, what the other children receive, and where the parents live. Rights of residence, maintenance and support are written into the deed.

Tax planning with your accountant

We model the CAT, CGT and stamp duty position and check each relief. Timing, the successor's off farm income and the six year clawback rules all matter.

Title and mapping

We check the folios, resolve any old title problems, and have the land mapped where fields are being divided or a site is being kept back.

Basic Payment and entitlements

The transfer of entitlements and herd number runs alongside the land, on the Department's timetable. Missing the window can cost a year's payment.

The deed of transfer

Signed by both generations, with any rights of residence, rights of way and reservations. Stamped, and registered with Tailte Eireann.

Wills for both generations

The transfer is only part of the plan. The parents' wills and the successor's own will are updated so the farm is protected if anything happens.

Common questions

The things people ring us about first.

How much tax will the son or daughter pay

Often none. With agricultural relief the value of the farm is reduced by 90 per cent before the group A threshold is applied. The farmer test has to be met.

What about the other children

There is no obligation to treat everyone equally, but resentment later is real. A site, a cash sum or a share of non farm assets is common. We help you record it clearly.

Can the parents keep living in the house

Yes. A right of residence, and often a right of maintenance and support, is written into the deed and registered on the folio.

What if the successor sells within six years

Agricultural relief is clawed back unless the proceeds are reinvested in agricultural property. The successor needs to know this before signing.

Is a lease an alternative

A long term lease to a young farmer has its own income tax exemption for the parent and can be a stepping stone to a transfer. It suits some families better.

Bring this to a first meeting

The folio numbers or old deeds, the herd number, last year's accounts, the Basic Payment statement and a note of who is who in the family.

Make an appointment

Before you ring

Two things you can check tonight.

Calculator

Capital acquisitions tax with farm relief

Enter the value and see the tax with and without agricultural relief.

Practice area

Wills

Both generations need an up to date will once the farm changes hands.

Practice area

Enduring power of attorney

So the farm can be run if a parent loses capacity before the transfer.

Client guides

Your guide, with your own figures.

Read the steps, try the calculator, then create a printable guide with your details to bring to your first appointment.

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