Valuation applied to farmland being used for the construction of wind turbines

barrymunster

I have a query re the valuation of an asset for CAT purposes where permission is being sought to build wind turbines on owned farmland under a 35 year lease . If the lease is signed how do you put a value on the land assuming its inherited /gifted after the lease has been signed . The land clearly has agricultural value but once the wind turbines are constructed then how do you value it . I know there is stuff on the revenue website using annuity rates based on government bonds . However if the occupier will pay income tax on the annual income is there not a tax double count on the beneficiary? Any practical guidance appreciated

CIARAN_BOYLE

barrymunster wrote: »

I have a query re the valuation of an asset for CAT purposes where permission is being sought to build wind turbines on owned farmland under a 35 year lease . If the lease is signed how do you put a value on the land assuming its inherited /gifted after the lease has been signed . The land clearly has agricultural value but once the wind turbines are constructed then how do you value it . I know there is stuff on the revenue website using annuity rates based on government bonds . However if the occupier will pay income tax on the annual income is there not a tax double count on the beneficiary? Any practical guidance appreciated

There's no problem with this manner of double taxation. Capital taxes on acquisition and income tax on income.

All factors would be applied in coming up with a valuation.

barrymunster

Hi Ciaran,

Thanks for the response. Do you have any insight as to how to put a value for gift tax/inheritance on such farmland where there would be a long term lease entered into with a wind turbine company to allow then develop wind turbines etc in exchange for an index linked income . There seems to be a definition for converting an annuity into a current market value of a capital sum that would need to be required to generate this level of income . Have you any insight and who would be able to advise on this apart from the Revenue. Would auctioneers have any idea of such complexities . Maybe Teagasc . Regards Barry

CIARAN_BOYLE

barrymunster wrote: »

Hi Ciaran,

Thanks for the response. Do you have any insight as to how to put a value for gift tax/inheritance on such farmland where there would be a long term lease entered into with a wind turbine company to allow then develop wind turbines etc in exchange for an index linked income . There seems to be a definition for converting an annuity into a current market value of a capital sum that would need to be required to generate this level of income . Have you any insight and who would be able to advise on this apart from the Revenue. Would auctioneers have any idea of such complexities . Maybe Teagasc . Regards Barry

An accountant or auctioneers would give useful professional advice.

Calahonda52

Difficult to follow what is the real purpose of this thread but IMO transfer the land as ag land and then sign the lease, problem solved