Tax free income from lease of farm land

Tax Free income from lease of farm land

A person may be entitled to an exemption from income tax of income arising from leasing of farm land subject to qualifying conditions

The farm land must be in the State. Leases between close relatives do not qualify.Lease must be in writing for a definite term of 5 years or more, and is made on an arm’s length basis.

The exemptions allowed are

Lease over 15 yrs   €40,000,

Leave 10 to 15 yrs  €30,000

Lease 7 to 10 yrs    €22,500

Lease 5 to 6 yrs     €18,000

However, above income is still subject to PRSI and USC.

Any queries in regards to same give me a call on 091 763817 or email at oliver@taxreturnhelp.ie