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Transfer of Entitlements - Tax Relief

  • 28-03-2022 10:56pm
    Registered Users Posts: 1 MRyan313

    Hi - I am leasing out my land on a long term lease which qualifies for income tax relief under the Revenue’s rules. I am also leasing out the Entitlements under the same lease, which will also result in the Entitlements benefited from the same tax relief.

    The farmer who is going to rent the land has signed a lease in her own personal name, but has requested that the Entitlements be transferred into the name of the limited company under which her farm business is operated. I suspect that she is doing so for her own tax management strategy.

    I am concerned that transferring the Entitlements to a different entity will unbundle the Entitlements from the land rent and put at risk the tax relief that is available when both are rented under the same lease. I am also concerned from a contractual viewpoint, as the contract is between me and the farmer (individually), and not with the limited company.

    Does anybody have any experience with this? I will seek appropriate tax advice but any practical experiences would be helpful.



  • Registered Users Posts: 2 alexpor

    Never had thought about such a thing before. You seem to have good knowledge. My friend Leasing is only an affordable way for small businesses to acquire the equipment they need without buying it outright. Leasing is a way of renting an asset that the business requires, such as a coffee machine. Monthly payments are made and the leasing company is responsible for the provision and upkeep of the leased item. And never mind that business entity search for business naming is the worst scenario in which one gets pilled.

  • Registered Users Posts: 832 ✭✭✭ minerleague

    Would prefer all to one entity ( the company ideally ) myself. can't see why farmer would want 2 leases as outlined or what benefit it means for them, maybe their own land is outside company structure?