Chartered Accountants have let us know of a snag with the IT38 form on ROS. It seems ROS won’t accept CAT Agricultural Relief claims in relation to growing trees/underwood where the farmers test is not satisfied.

The IT38 form on ROS requires the farmer test to be met in all claims for Agricultural Relief. The solution from Revenue is “in such cases the filer must insert figures in the IT38 to enable the farmer test to be met in order that trees and underwood can qualify for agricultural relief. A note of explanation should then be inserted in the ‘Additional Notes’ box.

The value of growing trees/underwood needs to be shown separately from the land. This value should be inserted under agricultural assets and the land value (which does not qualify for relief) can be inserted under other realty.”