Subject: Irish taxation

a) John is deciding whether to gift his farm to his nephew, Donal or his cousin, Clare. It comprises the following assets.

	market value	Cost	Year acquired
Farmland	1,000,000	20,000	1994
Farmhouse	400,000	10,000	1994
Farm machinery	200,000	150,000	2015

Donal is 34, holds a relevant agricultural qualification, and would intend on continuing the farming business. Clare is 55 and works as a school teacher. She would lease the land. Outline the Stamp Duty implications on the transfer of the farm to both possible beneficiaries.

b) John also owns a company, Z LTD., which has recently agreed to purchase a warehouse in Dublin. The warehouse was originally built in 2012 by Manley Builders Limited and Z LTD. has agreed to purchase the property for 600,000 (exclusive of any VAT). Z LTD. has also agreed with a farmer in Dublin to buy an undeveloped field for 50,000. The company intends to build a separate warehouse on the field. Z Ltd. makes fully VATable supplies.

Advise Z LTD. on the VAT implications arising on the purchase of the warehouse and the field in Dublin, explaining your answer, and calculate the Stamp Duty arising on both acquisitions.