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How to manage tax bill on cottage inherited from aunt

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Q I inherited a thatched cottage from my aunt. The cottage is worth about €150,000, so I understand I'm facing an inheritance tax bill of around €40,000. I don't have that kind of money. I'm keen to hold onto the cottage, as I spent many summers there as a child. Would it be possible for me to repay Revenue the tax bill over 10 to 15 years? Or do you have any other suggestions on how I could manage the tax bill? Niamh, Co Kildare

Unfortunately, due to the fact that no agricultural or business assets have been transferred to you, it appears that you won't qualify for either agricultural or business tax relief. (Agricultural relief reduces the market value of a gift or inheritance of agricultural land or property while business relief reduces the taxable value of gifts or inheritances of business property.) Your inheritance will be fully taxable as a result.


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