On the 1st January 2015 the Finance Bill came into law, but what impact will it have on the farming community?
- Changes to Capital Acquisition Tax
Capital Acquisition Tax relief will now only be available in respect to property gifted to or inherited by ‘active farmers’ or to individuals who are not active farmers, but who lease out the property to active farmers on a long-term basis. An ‘active farmer’ is defined as someone who spends not less than 50% of their normal working time farming the land on a commercial basis with a view to making a profit.
- Capital Gains Retirement Relief.
Capital Gains Retirement Relief will be available on land that has been leased for up to 25 years ending in the disposal. This is an increase on the previous period of 15 years.
- Consanguinity Relief.
Consanguinity Relief which applies to the transfer of non-residential property to certain relatives, has been extended to December 2017, in appropriate circumstances, where the recipient is an active farmer. This relief halves the amount of stamp duty payable from 2% to 1%.
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This article is merely for information purposes and is not and should not be taken as legal advice. If you have any queries in relation to this or any other aspect of agricultural law, you should consult with a solicitor who specialises in agricultural law. No solicitor/client relationship or duty of care or liability of any nature exists between you and Hanahoe and Hanahoe solicitors until you receive written confirmation that we are acting as solicitors on your behalf.