Land leasing Relief for certain income, leasing of farm land

Land Leasing Exemption

The land leasing exemption is available to land owners who let their land under a qualifying lease

A qualifying lease:

  • is in writing or evidenced in writing.
  • contains the names and addresses of the lessor(s) and lessee(s).
  • specifies the acreage, address, location etc of the land.
  • sets out the terms of the lease.
  • is signed by the lessor(s).
  • must be for a definite term of five years or more.

A qualifying lessee:

  • can be an individual or a company.
  • must carry on the trade of farming.
  • must be unconnected to the lessor.

The relief is given as a deduction in computing the total profits or gains chargeable to tax under Case V of Schedule D.

The amount of relief given is:

5 years or more but less than 7 years                              €18,000

7 years or more but less than 10 years                            €22,500

10 years or more but less than fifteen years                   €30,000

15 years of more                                                                   €40,000

Please contact us if you want to discuss further