Tired of farming and thinking of leasing out the farm ?

If you thinking of leasing out farmland the following relief may apply to you

You mast be an individual aged 40 years or over, or an individual who is permanently incapacitated by mental or physical infirmity from carrying on a trade of farming, may be entitled to an exemption from income tax of certain income arising from leasing of farm land.

The amount of the relief

The income is assessed as normal under Case V of schedule D and the amount of the profit from the letting of farmland is included in the total from all lettings. The amount of the relief, (subject to the maximum limit) is allowed as a deduction in arriving at total income as follows:

• €12,000 of annual leasing income where the lease/leases are for a term of at least 5 years,
• €15,000 where the lease/ leases are for a term of at least 7 years
• €20,000 where the lease / leases are for a term of at least 10 years

Conditions

The farm land must be in the State.

Leases between close relatives such as family members do not qualify.

Qualifying lease is a lease of farm land which is in writing or evidenced in writing, is for a definite term of 5 years or more, and is made on an arm’s length basis between one or more qualifying lessors and one or more qualifying lessees.

Any queries on same give me a call on 091 763817