Many people that inherit land want to put it to a sustainable use and forestry in many cases is the best alternative.
Some such people do not reside in Ireland, but this does not exclude them from receiving the annual forest premium.
The afforestation scheme accommodates such instances and Forestry Services Ltd. provide a tailored forest establishment and management service for such people.
Agricultural relief is available for Gift and Inheritance tax since the introduction of Capital Acquisitions Tax in 1976. The relief operates by reducing the market value of “Agricultural property” by 90% so that gift or inheritance tax is calculated on an amount – known as “agricultural value” – which is substantially less than the market value.
The relief applies provided the beneficiary qualifies as a “Farmer”. A qualifying farmer is any individual of whom at least 80% of his or her assets, after taking a gift or inheritance, consists of agricultural property on the valuation date of the gift or the inheritance.
Forestry is accepted as an agricultural asset for the purposes of calculating agricultural relief.
Beneficiaries of forestry assets do not necessarily have to satisfy the normal working time test to enable qualification, which is a significant advantage for beneficiaries of forestry assets.
Those planning for succession with significant deposit or share assets should consider securing forestry assets to ensure qualification for agricultural relief, subject to securing the necessary taxation advice.
Forestry Services Ltd will source good quality forestry assets and provide ongoing management of same for a commission of the net profits from timber sales over the crop rotation.