Following last week’s Budget, and with file and pay deadlines looming, it is opportune to consider some tax planning.
Generous income tax exemptions apply to landowners who lease. Each landowner can qualify for the following annual income tax exemptions on leases undertaken since 1 January 2015:
Lease period five to seven years – up to €18,000 annual rental income is exempt from income tax.Lease period seven to 10 years – up to €22,500 annual rental income is exempt from income tax.Lease period 10 to 15 years – up to €30,000 annual rental income is exempt from income tax.Lease period greater than 15 years – up to €40,000 annual rental income is exempt from income tax.The allowable rental income can be a combination of land value and Single Farm Payment/Basic Payment. Where a farm may be leased as a going concern, a value for machinery may also be included.Landowners who enter into long-term leases are deemed to remain active for the purposes of Capital Gains Tax Retirement Relief for up to 25 years provided they farmed themselves for at least 10 years prior to the first leasing.
ConacreLandowners who currently operate conacre arrangements have an opportunity to change to long leases and benefit from both income tax relief and capital gains tax retirement relief. To qualify, such landowners must take action before 31 December 2016.Research has shown conacre delivers no benefit to either landowner or farmer – this is a great time to change.
Partnerships are proving to be an excellent arrangement, especially within the family. Operating your farm business as a partnership can deliver a number of benefits, including:Enhanced EU payments under the young farmer schemes.Enhanced stock relief.Better use of annual tax reliefs and exemptions.An annual €5,000 income tax exemption for five years is in the pipeline, if the partnership is part of an approved succession plan.
Land Mobility Opportunities
A key element of the Land Mobility Service is matching people to opportunities. This is a brokerage service to find the ideal farmer match for you. Phone 01-4199555 to speak with one of our specialist team and provide your details and preferred option. Confidentiality is assured. Qualified leads will be passed to you for further consideration.
LOOKING TO RENT
100 HECTARE PLUS farm wanted to lease. Location not important. Land should be of reasonable quality at least and would be maintained to the highest standard. Intention is to put a progressive beef/suckler enterprise in place on the farm and there would be a requirement for winter housing facilities. | REFERENCE ID01 FARMER LOOKING TO lease tillage land in the Leinster area for short or long term. Partnership or share farming considered. Already farming over 500 acres in Leinster. Good range of modern machinery available. May suit someone retiring from farming. | REFERENCE NY02 DAIRY FARMER WITH own herd of cows (200+) seeks dairy farm to share milk on or to lease. Currently managing own dairy farm for past 20 years, this would be a second separate unit. As well as bringing a herd of cows, I would also bring a wealth of experience and management skills in both grassland and the financial aspects of the business. Ideal for someone looking to step back from the day to day running of a farm. North Cork/South Tipperary area.
| REFERENCE OK03SOUTH TIPPERARY DAIRY farmer looking to lease 100 to 200+ acres around the Cahir, Cashel & Golden areas. Will undertake to maintain and enhance farm to the highest standard.
| REFERENCE OK04TILLAGE LAND WANTED in southeast Galway, north Tipperary, south Offaly or Laois areas. Any size greater than 30 acres considered. Would maintain lands to the very highest standard and be willing to carry out upgrading work. Open to different types of arrangements & references available. | REFERENCE OK06
Farms for Lease 80 ACRE FARM between Monastervin and Portarlington. All one block. Separate Water and ESB supply. This land has No Entitlements attaching. Farm presently in grass but suitable for multiple uses. Owner is no longer in a position to farm and is looking to enter a lease with the right person. The owner is looking for a fair return and wants to see the farm properly cared for and enhanced, the owner is prepared to contribute towards agreed improvements.
| REFERENCE OH03
RearingCONTRACT REARER WITH 3 years experience looking to rear sixty 0-1 and sixty 1-2 year olds. No other stock on farm so sole focus will be on heifers. All targets for A.I., breeding and weights met over the last 3 years. Good south facing early grass farm in south Leinster/east Munster area with winter accommodation available. Regular weighing’s taken and owner informed of all progress i.e. weights/breeding/health etc. Can A.I. and/or use stock bull. Open to different types of arrangements. | REFERENCE TN01 CONTRACT HEIFER REARING available on 130 acre grassland farm in Co. Roscommon. Former dairy farmer with good animal husbandry skills and grassland management skills available to take in heifer calves from time of weaning and keep to point of calving. Farm has slatted shed accommodation available and fields divided into paddocks with reseeding carried out on a rotational basis. Can cater for up to 200 head, 100 weanlings & 100 yearlings. Willing to take stock from anywhere in Ireland and open to different types of contract arrangements. | REFERENCE IL02REARING SERVICE AVAILABLE near Bandon, Co. Cork on 50 acre south facing, dry, sheltered farm. Individual is former dairy farmer who has 3 years experience of contract rearing consistently achieving above target weights at critical times. Reference may be obtained from previous client. | REFERENCE TX21ANYWHERE IN MUNSTER Area, a contract heifer rearer is sought by a dairy farmer to rear sixty 0-1 year olds & sixty 1-2 year old heifers. Calves would be sent out at 3 weeks of age to be returned in calf at 20 months old. Open to different types of contract rearing arrangements. |REFERENCE TX20
Dairy Opportunity NEAR LIMERICK CITY 165 acre ready to go Bord Bia approved Dairy Farm to Lease, all in one block. Modern slatted dairy unit with Milking Parlour, Dairy, Cubicles, Calving and calf rearing facilities. System all under one roof includes 170 cubicles. The farm is dry with good fertility and has good grazing infrastructure with a central roadway and water to all paddocks. This is a turn key ready to go dairy farm but could also be used for beef. Owner is retiring. | REFERENCE NV03 EXCITING COLLABORATIVE OPPORTUNITY available in the North West of Ireland. 250+ cow operation, excellent land base with huge potential. Opportunity available for a young person to get involved and have a share in this dairy operation. Also opportunities for existing operators to invest in the business through capital, management, and/or cows. | REFERENCE WY03 SOUTH TIPPERARY WORKING Dairy Farm of just over 200 acres of which 175 acres is in one block representing the milking platform, farm has good roadway, paddock and water infrastructure. Housing, accommodation, calving and milking infrastructure in situ for 150 to 160 cows. Land is top quality and free draining. Owner is looking to step back and would like to establish a long lease with a suitable collaborator. | REFERENCE OK05 120 ACRE WORKING dairy farm between Bandon and Macroom. Good fertile dry grass farm adjusted to 110 grass acres all in one block with roadways, water and paddocks. Infrastructure includes 60 cubicles plus loose and slatted houses, 8 unit milking parlour with meal feeders. The farm would make an ideal stand alone dairy unit (well capable of carrying in excess of 100 cows) or a heifer rearing block. Owner is looking to step back would like to enter into a shared arrangement or lease with the right person. | REFERENCE TX22 SKILLED YOUNG
FOR AN OPPORTUNITY YOUNG TRAINED AMBITIOUS farmer looking to lease a farm or enter a share farming agreement with a view to developing a profitable dairy business for all parties. | REFERENCE NE03