Filing the IT38 return
If you claim agricultural relief, you must file an IT38 gift and inheritance tax return, even when the relief brings the tax to nothing. Here's when to file, how, and what you'll need to hand.
In short
- File if you claim agricultural or business relief, whatever the value.
- Also file if what you've received within one group is over 80% of that group's threshold.
- File online through Revenue myAccount or ROS. A farm inheritance with agricultural relief needs the full IT38, not the short form.
- Pay and file by 31 October. A late return costs a surcharge of 5% or 10%, plus interest.
When you must file
You must file an IT38 if either of these applies:
- you claim agricultural relief or business relief, whatever the value of the property
- the taxable value of the gifts and inheritances you've received within one group since 5 December 1991 is over 80% of that group's threshold
For a son or daughter, 80% of the €420,000 Group A threshold is €336,000. You must file even if no tax is due.
Which form
Most people file the full IT38 online, through myAccount, or through ROS if an accountant or tax adviser files for you. There's a short form, the IT38S, but it can only be used for a simple gift from one person on one day, with no reliefs other than the €3,000 small gift exemption. A farm passing with agricultural relief needs the full IT38.
The deadline
| Valuation date | Pay and file by |
|---|---|
| 1 January to 31 August | 31 October the same year |
| 1 September to 31 December | 31 October the following year |
If you both pay and file online, Revenue usually gives a few extra weeks, into November. Doing only one of the two online doesn't get you the extension.
For a gift, the valuation date is the date of the gift. For an inheritance, it's usually the date the grant of probate or administration issues, which can be many months after the death.
What you'll need
- your PPS number and the details of the person the farm came from
- the valuation date
- a market value for the land, buildings, stock, machinery and payment entitlements
- everything you own on the valuation date, for the 80% farmer test
- proof you meet the active farmer test, such as your Green Cert, or a lease to an active farmer
- any earlier gifts or inheritances within the same group since 5 December 1991
- any debts and costs that come off the value
If you're late
A return filed late, or tax paid late, brings a surcharge of 5% of the tax if it's within 2 months of the deadline, and 10% after that. Interest is charged on tax paid late.
After you file
Agricultural relief has 6-year rules, and 10 years for land with development value. If something happens in that time that brings a clawback, such as selling land without reinvesting, Revenue must be told and the tax paid. Keep your valuation and records for at least that long.
Common questions
Do I need to file an IT38 if no tax is due?
Yes, if you claim agricultural or business relief, or if what you have received within one group is over 80% of that group's threshold.
When is the IT38 deadline?
31 October: in the same year if the valuation date falls between 1 January and 31 August, and in the following year if it falls between 1 September and 31 December. Paying and filing online usually brings a short extension.
Can my accountant file the IT38 for me?
Yes. An accountant or tax adviser can file it for you through ROS.
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