Paul Kehoe (Wexford, Fine Gael)
Link to this: Individually | In context | Oireachtas source

58. To ask the Minister for Finance if he will address a matter (details supplied) regarding land leasing exemptions; and if he will make a statement on the matter. [4283/20]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Section 664 of the Taxes Consolidation Act 1997 provides for an income tax exemption for certain income arising from the leasing of farm land. This relief was introduced in Finance Act 1985 to encourage landowners to lease out land on a long-term basis to active farmers, thereby encouraging more productive use of the land. Subject to an upper limit, individuals who qualify for the relief are entitled to take a deduction in determining their total income for income tax purposes.

To qualify for this relief, a number of conditions must be met. One of these conditions is that there is a lease of “land in the State wholly or mainly occupied for the purposes of husbandry and includes a building (other than a building or part of a building used as a dwelling) situated on the land and used for the purposes of farming that land”.

In this context, husbandry includes normal farming, market gardening, horse breeding, cattle dealing, fruit growing and any other form of husbandry, intensive or otherwise, which involves the use of the land or its produce. Therefore, if a farmer leases out a farm building to another farmer and the building is used for the purpose of husbandry, which would include the housing of farm animal stock, then the farmer will be entitled to the leasing exemption. This is assuming that all other conditions are met.

I am advised by Revenue that they have published a Tax & Duty Manual (Part 23-01-23) which sets out all of the relevant conditions of the relief and may be of assistance.