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.