Revenue has issued several clarifications around the income tax relief that is available from the leasing of farmland.
To qualify for the relief, the person taking on the land must not be connected to the person letting it. Agricultural solicitor Aisling Meehan told the Irish Farmers Journal that Revenue has clarified that in a case where a widower leases land to their late spouse’s immediate family, such as a brother-in-law, these people are no longer considered connected and would qualify for relief.
Leases are also required to be for a “definite term”. Revenue has explained this must be for five years or more, Meehan said. Extending a lease at the end of a definite period is considered a new lease.
ADVERTISEMENT
An individual who is leasing out the land but is a tax resident in another jurisdiction may also qualify for the relief according to Revenue.
Finally, Revenue has said that to qualify for relief a person must own the land.
For example, if a husband owns the land but it is let jointly with his wife with a provision each receive half the rent, only the husband should qualify for the relief.
Register for free to read this story and our free stories.
This content is available to digital subscribers and loyalty code users only. Sign in to your account, use the code or subscribe to get unlimited access.
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
CODE ACCEPTED
You have full access to the site until next Wednesday at 9pm.
CODE NOT VALID
Please try again or contact support.
Revenue has issued several clarifications around the income tax relief that is available from the leasing of farmland.
To qualify for the relief, the person taking on the land must not be connected to the person letting it. Agricultural solicitor Aisling Meehan told the Irish Farmers Journal that Revenue has clarified that in a case where a widower leases land to their late spouse’s immediate family, such as a brother-in-law, these people are no longer considered connected and would qualify for relief.
Leases are also required to be for a “definite term”. Revenue has explained this must be for five years or more, Meehan said. Extending a lease at the end of a definite period is considered a new lease.
An individual who is leasing out the land but is a tax resident in another jurisdiction may also qualify for the relief according to Revenue.
Finally, Revenue has said that to qualify for relief a person must own the land.
For example, if a husband owns the land but it is let jointly with his wife with a provision each receive half the rent, only the husband should qualify for the relief.
If you would like to speak to a member of our team, please call us on 01-4199525.
Link sent to your email address
We have sent an email to your address. Please click on the link in this email to reset your password. If you can't find it in your inbox, please check your spam folder. If you can't find the email, please call us on 01-4199525.
ENTER YOUR LOYALTY CODE:
The reader loyalty code gives you full access to the site from when you enter it until the following Wednesday at 9pm. Find your unique code on the back page of Irish Country Living every week.
SHARING OPTIONS