Agricultural Relief

What are the conditions for Agricultural Relief?

To qualify for agricultural relief as a farmer, the value of your agricultural property must:

  •  consist of at least 80% of your total property value on the valuation date. This is called the ‘Farmer Test’. This does not apply where agricultural property consists only of trees and underwood. 

Where both the date of the gift or inheritance and the valuation date are on or after 1 January 2015 you must: 

  • farm the agricultural property on a commercial basis for at least six years from that date
  • or
  • lease the property to someone who farms the agricultural property on a commercial basis for at least six years from that date.

The above requirements are known as the 'Active Farmer Test'.

Additionally, the person receiving the gift or inheritance, or the person leasing the property must either:

  • have an agricultural qualification (as listed in Schedule 2, 2A or 2B of the Stamp Duties Consolidation Act 1999)
  • or
  • farm the agricultural property for at least 50% of his or her normal working hours.

Next: How do you calculate the relief amount?