Leasing land tax advantage to the purchaser

Tomjim

If I leased land for 5 years to a neighbouring farmer is there any tax advantage/ benefit to him. I know my rent will be tax free

Say my name

It'll reduce his/hers profit.

So yes.

Tomjim

If the neighbouring farmer takes the land would there be a further advantage to him from a tax point of view in signing a lease with me as against if he takes the land and we don't sign a formal lease.

Donald Trump

Don't have direct experience of it but I think that if you go in under that scheme and sign the lease, you will also have to pay stamp duty on it and send it in to register it.
I think the stamp duty might be 6% of one year's rent.
This is all off the top of my head so might be wrong. But it might jog someone else's memory.

All that said, as the person leasing it out, you'd be mad not to go for the tax relief scheme. Unless it is only a very small bit or you want to leave it in case you want to lease out more on a larger lease next year. (I think that you can only have one lease under the scheme)

Grueller

I have a fairly substantial block 8 miles from home. Tbh its a bit of a pain in the ass.
A bit roughly the same size is going up for lease next year beside me I am led to believe.
Could I claim tax relief on leasing mine out and then lease in the bit beside me from the proceeds. This would leave me in a far better position as I
1. would be able to take tax free income from my own land
2. Would be able to write the cost of the lease beside me off every year
3. Could transfer my own entitlements over
4. No pulling a cattle trailer about the country.

Maybe revenue have rules against this.

Donald Trump

Grueller wrote: »

I have a fairly substantial block 8 miles from home. Tbh its a bit of a pain in the ass.
A bit roughly the same size is going up for lease next year beside me I am led to believe.
Could I claim tax relief on leasing mine out and then lease in the bit beside me from the proceeds. This would leave me in a far better position as I
1. would be able to take tax free income from my own land
2. Would be able to write the cost of the lease beside me off every year
3. Could transfer my own entitlements over
4. No pulling a cattle trailer about the country.

Maybe revenue have rules against this.

I asked a very similar question about this a few months back. I think I had a look out of curiosity and it would be allowed as long as you are not leasing to and from the same person.


But I'm not an accountant/solicitor!

Edit: here was the thread but not too much info on it
https://www.boards.ie/vbulletin/showthread.php?p=107964941

BENDYBINN

Say my name wrote: »

It'll reduce his/hers profit.

So yes.

He wouldn’t be leasing the land if he didn’t think it would increase his profit!

Donald Trump

BENDYBINN wrote: »

He wouldn’t be leasing the land if he didn’t think it would increase his profit!

He meant as in write it off against tax


Which you can do for rent but not purchase (except interest maybe)

Tomjim

if the neighbouring farmer is under 40 and is a trained qualified farmer, and is a dairy farmer, will he be eligible for additional subsidies/ entitlements etc and if taken the land on a 5 year lease