A new regime for inheritances and gifts when availing of agricultural relief – a legal note from Kilkenny Solicitors Holland Condon

Jan 2, 2015

From yesterday, 1st January, 2015, the rules relating to agricultural relief have altered. Essentially, Revenue require real farming to be part of the process, if a beneficiary wants to avail of the relief.


Up to the end of 2014, in order to be classed as a “farmer”, the only test you had to pass, was a mathematical one, i.e.  greater than 80% of all your assets, including the value of the gift/inheritance, needed to be agricultural if you were to be a farmer for CAT purposes. It mattered not that you never had been even on a farm or that you couldn’t tell a heifer from a horse. It allowed for post death planning, where a beneficiary’s non-agricultural assets were transferred to ensure they passed the 80% rule.


Since 1st January, 2015,  the beneficiary will need to satisfy one of the following :-

  • Be a trained farmer and actively farm the land ;
  • Be an active farmer, spending at least 50% of your working time in farming activities;
  • Lease the agricultural property for at least 6 years to a person who satisfies either of the above criteria.

It is vital to examine all criteria for agricultural relief before embarking on a farm transfer.


– Holland Condon Solicitors Kilkenny

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