John transfers agricultural property to his daughter Patricia, with a market value of €300,000.
Example calculation of Agricultural Relief
| Market value |
€300,000 |
| Less 90% |
(€270,000) |
| Agricultural value |
€30,000 |
As the market value is reduced, the costs and expenses associated with the property are also reduced before being deducted. Patricia paid €50,000 up front and €10,000 in expenses for the transfer.
Example calculation of Agricultural Relief
| Consideration + Expenses |
€60,000 (€50,000 + €10,000) |
| Less 90% |
(€54,000) |
| Deductions |
€6,000 |
The taxable value of the property is:
| Market value |
€300,000 |
| Less 90% |
(€270,000) |
| Agricultural value |
€30,000 |
| Less deductions |
(€6,000) |
| Taxable Value |
€24,000 |