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bigduckontax
bigduckontax, Accountant
Category: Tax
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Am I liable tax if I give my daughter a block of agriculture

Resolved Question:

Am I liable for any tax if I give my daughter a block of agriculture land?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. Before I can fully address the position I need to know for what purpose this land is being put too currently.
Customer: replied 1 year ago.
My daughter has been renting this land from me and has used it for agriculture
Expert:  bigduckontax replied 1 year ago.
Sorry to be so pedantic, what agriculture?
Customer: replied 1 year ago.
She has been using for sheep
Customer: replied 1 year ago.
She rears sheep and sells lamb
Expert:  bigduckontax replied 1 year ago.
Here is Simmons Gainsford Chartered Accountants LLP's advice: 'Capital gains tax hold overAll land which qualifies for inheritance tax agricultural property relief, whether at 100 per cent or 50 per cent, can be given away, for example to the next generation, without liability to capital gains tax being incurred. The gain treated as arising on a gift can be ‘held over’ to the transferee, so that the transferee takes the land at the transferor’s original cost price.' Gifts create a Potentially Exempt Transfer (PET) in the donor's Inheritance tax (IHT) affairs. PETs run off at a taper over seven years and in the event of a decease within that period are added back to the donor's estate for IHT purposes. PETs are the first to suffer IHT and in the event of the deceased estate being insufficient to meet the IHT on the PET the liability cascades down to the beneficiary for immediate payment. Whilst the land may be subject to Agricultural Property Relief this area of tax is so complex that detailed professional advice should be sought on each and every occasion where it is encountered. However, if the donor survives seven years, there is no need to worry and the recipient can always protect their position with a decreasing term life insurance policy. With good fortune everyone should escape tax here. I do hope that my reply has been of assistance.
Customer: replied 1 year ago.
Thank you, ***** ***** to survive for another 7years (God willing)
Expert:  bigduckontax replied 1 year ago.
TRAs do happen! Please be so kind as to rate me before you leave the Just Answer site.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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