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My client inherited 60 acres from his uncle and satisfies the conditions eg 80 % etc.. His intention is to actively farm 25 acres himself and lease out the remaining 35 acres to another active farmer..will this combination exclude him from qualifying for Ag Relief eg does it have to be all farmed or all leased to an active farmer.. ?

 

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Posted by (Questions: 20, Answers: 2)
Asked on 15 October 2018 8:52 pm
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To be an active farmer, he must

(i) hold a farming qualification, or achieve such a qualification within 4 years of the date of the gift or inheritance, and for not less than 6 years commencing on the valuation date he must farm agricultural property on a commercial basis,

(ii) for not less than 6 years commencing on the valuation date he must spend not less than 50 per cent of his normal working time farming agricultural property on a commercial basis, OR

(iii) lease the whole or substantially the whole [i.e., 75%] of the agricultural property, for not less than 6 years commencing on the valuation date to an active farmer within (i) or (ii).

If he holds a farming qualification he might get in under (i). Otherwise, in your case, to qualify I think he would need to lease 45 [75%] of the 60 acres.

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Posted by (Questions: 5, Answers: 4689)
Answered on 17 October 2018 7:01 pm