If you want to give your child €1,000,000 and you give him/her cash he/she will pay tax on the gift or benefit in a will at a rate of 33%. Your child will have a tax free threshold of €335,000, therefore will be taxed on the excess of €665,000.
The same capital acquisitions tax/gift tax will arise if you give your child a house, or other real property.
But give your child agricultural land? He/she will pay no tax on the gift/benefit, provided it is handled correctly.
Because your child will qualify for agricultural relief as a ‘farmer’. And the value of the asset of €1,000,000 of agricultural land will be reduced by 90% thus giving a taxable value of €100,000.
The tax free threshold will take care of that, thus ensuring no tax is paid.
There are other reliefs in addition to agricultural relief. But agricultural relief is a spectacular one.
Learn more about capital acquisitions tax here.