LEASING FARM

Ashill5

I currently considering leasing out the farm on a long term lease. I'm working fulltime off farm and am currently just running a few heifers on it and a neighbour has taken a few fields for sheep as I have no desire to be making silage bales to sell.

As there is quite a good bit of proper fencing to be done for sheep, would it be possible for me, if I bought the fencing materials and the Lessee getting the fencing put up.

Could I use it as tax deduction and claim the vat back?

Justjens

If you lease the farm on a long term lease thereby availing of the income tax relief (ie paying no income tax) where is the tax relief deductible from?

Also chances are Revenue will pick up on the VAT reclaim, if as described above, as you are in a long term lease and paying no tax.

Water John

If you lease you will be selling your stock. Lease from early next year. In the meantime buy fencing and if necessary contract fence. Those costs can then be against your profit this year. A profit mainly caused by you stock sales. This will lower that tax bill.
Also you can reclaim the VAT on fixed materials used to fence.

My suggestions, not a tax specialist.

Sheep breeder

If your going to lease out your farm, you would need to get it into your head that the guy leasing the farm is the man farming it and not you.
I am in to my third year of a lease and the guy I have taken it from is breaking my heart, last year he went about spraying a field for thistles with ewes and lambs in it only the guy that come to spray wouldn't do it with the sheep in the field,he sold hay out of the shed to a friend of his, was setting 3 fields and a shed to a guy with horses for the winter months and doesn't want our contractor in doing work wants the guy he used when he farmed, and to cap it all in April got his contractor to plough up two fields we were keeping for to wean lambs on to because he didn't like the grass in it, and all this done with out telling us.

sea12

Sheep breeder wrote: »

If your going to lease out your farm, you would need to get it into your head that the guy leasing the farm is the man farming it and not you.
I am in to my third year of a lease and the guy I have taken it from is breaking my heart, last year he went about spraying a field for thistles with ewes and lambs in it only the guy that come to spray wouldn't do it with the sheep in the field,he sold hay out of the shed to a friend of his, was setting 3 fields and a shed to a guy with horses for the winter months and doesn't want our contractor in doing work wants the guy he used when he farmed, and to cap it all in April got his contractor to plough up two fields we were keeping for to wean lambs on to because he didn't like the grass in it, and all this done with out telling us.

Have you a legal lease set out? Time to be having a serious chat with that lad

Ashill5

Thanks Sheepbreeder,

To be honest, I'm even before you commented I had decided to hold on to it myself as was thinking the neighbour would skin the place with sheep.
I'm going to get fencing this year and get maybe 20 store lambs (texal or suffock) and see how I get on with them over the winter and maybe put them in lamb next year, holding onto their lambs and fattening them as hoggets.
To be honest, I don't know much about sheep, but will start small and see how I get on.
I have sheds and can house them over the winter if needed.

Water John

Best of luck with that.