Agricultural Relief

What are the conditions for Agricultural Relief?

To qualify for Agricultural Relief as a 'farmer' you must satisfy an ‘asset test’ and an ‘active farmer test’.

Asset Test

To satisfy the asset test at least 80% of the total value of your property must consist of agricultural property. The asset test is carried out on the valuation date.

You must include the gross market value of all your property, including the property in the gift or inheritance. You cannot deduct any debts from the value of the property for example, a mortgage or other charge on the property. However, loans taken out to purchase, improve or repair your principal private residence can be deducted, as long as the house is not agricultural property.

  • Example

    Mary owns a house (valued at €80,000) with a mortgage (€20,000), a car (€5,000), and a bank deposit account (€2,000). Her house is not a farmhouse. She receives a gift of farmland (€300,000), plus livestock and farm machinery (€50,000). Does Mary satisfy the asset test for the purposes of Agricultural Relief?

    Example of Agricultural Relief
    AssetAgricultural PropertyAll Property
    House   €60,000
    Car   €5,000
    Bank Deposit   €2,000
    Farmland €300,000 €300,000
    Livestock & Machinery €50,000 €50,000
    Total €350,000 €417,000

    The gross market value of Mary's assets after receiving the gift is €417,000; the gross market value of her agricultural assets is €350,000. (€350,000/€417,000) x 100 = 83.9%.

    Mary satisfies the asset test for the purposes of the Relief.

Active Farmer Test

To atisfy the ‘Active Farmer Test’ you must:

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

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

  • hold a ‘trained farmer qualification’ or hold a qualification listed in Schedule 2 or 2A of the Stamp Duties Consolidation Act 1999
  • or
  • farm the agricultural property for at least 50% of their normal working hours.

Note

A ‘trained farmer qualification’ is:

  • a qualification listed in the table to section 654A, Taxes Consolidation Act 1997
  • and
  • any other qualification certified by Teagasc.

The full list of ‘trained farmer qualifications’ is available on the Teagasc website.

Next: How do you calculate the relief amount?

Published: 16 December 2025 Print this page

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