Tax implications on 5 year leases

niallf

Hi, I have looked elsewhere but I cant seem to find a definite answer to this in plain English. My aunt has her farm rented to me and another neighbour - both on 5 year leases.

Do anyone know if she can claim the 5 year tax exemption on both leases or just on one lease?

Thanks

Niall

atlantic mist

niallf wrote: »

Hi, I have looked elsewhere but I cant seem to find a definite answer to this in plain English. My aunt has her farm rented to me and another neighbour - both on 5 year leases.

Do anyone know if she can claim the 5 year tax exemption on both leases or just on one lease?

Thanks

Niall

she cant claim exemption for the part rented to you as you are related, lease with neighbor must be stamped by revenue to avail of tax free exemption - auctioneer, solicitor, accountant should be able to do stamping for you

niallf

atlantic mist wrote: »

she cant claim exemption for the part rented to you as you are related, lease with neighbor must be stamped by revenue to avail of tax free exemption - auctioneer, solicitor, accountant should be able to do stamping for you

Thanks Atlantic, would you know if we werent related could she claim tax relief on more than one qualifying lease?

wrangler

niallf wrote: »

Thanks Atlantic, would you know if we werent related could she claim tax relief on more than one qualifying lease?

I have three leases tax free so I suppose yes

893bet

Is there a threshold on the tax free income from a lease?

wrangler

893bet wrote: »

Is there a threshold on the tax free income from a lease?

Depends on the length of the lease,18000 on a 5 yr lease €30000 on a ten year and €40000 on a fifteen year

893bet

wrangler wrote: »

Depends on the length of the lease,18000 on a 5 yr lease €30000 on a ten year and €40000 on a fifteen year

That’s a lot of €€ tax free.

If you lease entitlements with the land can that be included?

I am guess not.

wrangler

893bet wrote: »

That’s a lot of €€ tax free.

If you lease entitlements with the land can that be included?

I am guess not.

yea, entitlements tax free with the land but not without the land.....tax free is a nice little bonus, 40% extra here
Farm is in joint names here so we can get double the amounts tax free. :D:D

Dinzee Conlee

wrangler wrote: »

yea, entitlements tax free with the land but not without the land.....tax free is a nice little bonus, 40% extra here
Farm is in joint names here so we can get double the amounts tax free. :D:D

I didn’t realise you could lease the entitlements tax free as well, I had assume it was only the land lease was tax free...

It’s impossible to compete with that really isn’t it (in terms of making the same money farming it yourself)

Nekarsulm

893bet wrote: »

That’s a lot of €€ tax free.

If you lease entitlements with the land can that be included?

I am guess not.

Well if you don't lease them with the land, don't you lose them?

Donald Trump

My understanding was that you could only claim relief on one lease. Maybe that was wrong.

Also, I think you have to pay stamp duty on the lease but I think this is waived for a lease of 6 years or more. Not sure how much it is. Probably 6% of one years rent

wrangler

Nekarsulm wrote: »

Well if you don't lease them with the land, don't you lose them?

No, you can lease them without land

wrangler

Donald Trump wrote: »

My understanding was that you could only claim relief on one lease. Maybe that was wrong.

Also, I think you have to pay stamp duty on the lease but I think this is waived for a lease of 6 years or more. Not sure how much it is. Probably 6% of one years rent

Tenant pays the stamp duty, I think it was 6% as well

trg

atlantic mist wrote: »

she cant claim exemption for the part rented to you as you are related

This is incorrect. It depends what the relationship is and this one is allowed.

wrangler

trg wrote: »

This is incorrect. It depends what the relationship is and this one is allowed.

Every day's a school day, I didn't know that.
I looked it up
'' A niece / nephew is NOT connected with an aunt/uncle for the purposes
of this relief''