Land leases

trg

Hi there,

Not sure if this is the right forum (please move if not) but I'm enquiring as to whether a lease between 2 parties for lease of farm land needs to be done by a solicitor for the purposes of land lease exemption?

Revenue say that a qualifying lease is a lease of farm land
- in writing or evidenced in writing
- for a definite term of 5 years or more, and
- made on arms length basis between a qualifying lessor and qualifing lessee

It doesnt appear to say the lease must be done by a solicitor but maybe it does?
Does it have to be stamped i.e. is a lease valid at all without being stamped?

IFA have a masterlease which they say is sufficent but I wasnt too sure. I know that some agricultural consultants purport to provide this service also. Would it be considered risky to use them?
“qualifying lease” means a lease of farm land which is—
(i) in writing or evidenced in writing,
(ii) for a definite term of 5 years or more, and
(iii) made on an arm's length basis between a qualifying lessor or qualifying lessors and a lessee or lessees who is, or each of whom is, a qualifying lessee in relation to the qualifying lessor or the qualifying lessors;


Sorry for all the questions, thanks for help

Happdog

I would say that when drawing up a lease it would always be advisable to have a solicitors input. The lease itself does not have to be signed by a solicitor although it would be in my opinion foolish not to get advice.

Problems outside of tax implications could arise in the future and the master lease from the IFA will not have any specific clauses that may be of benefit in clarifying any problems particular to this lease in the future.

Also there are other criteria that have to be satisfied to avail of the exemption, in particular the status of the lessor and lessee, and also their relationship. It would be worth spending a small amount now to insure everything is in order as opposed to getting hit with a tax bill in the future.

In regards “agricultural consultants” I would say that the most important attribute when dealing with someone who offers professional services is to ensure they have insurance. I do not know the status of agricultural consultants, but I do know that solicitors have insurance.