Tax reliefs related to farming

Leasing farm land

You may claim Income Tax (IT) relief on certain income that you earn from the long-term leasing of your farm land. Your farm land must be in Ireland and the tax relief cannot operate to create a loss. You cannot lease your land to a close relative.

You should use the Revenue Online Service (ROS) to declare this income on your Income Tax Return (Form 11).

Qualifying lease

For your lease to qualify, your lease must be:

• in writing or evidenced in writing
• for a definite term of five years or more
• for the purpose of working the land with the aim of taking produce from the land. For example, normal farming, market gardening, horse breeding, cattle dealing or fruit growing.

Qualifying lessor

If you lease land to another person you are known as a lessor. Only lessors who are individuals can qualify for the relief.

A 7 year holding requirement applies to land purchased under a contract entered into on, or after, 1 January 2024.  You must own the land for at least 7 years before being entitled to qualify for relief.

Qualifying lessee

A lessee is the person who leases the land from you. From 1 January 2015 a qualifying lessee can include a company. The lessee cannot be connected to the lessor. The lessee must use the leased land for the purpose of carrying on a farming trade.

How the relief is given

The profit from the letting of the farm land is assessed by Revenue as rental income. This relief is given as a reduction (up to a maximum limit) of your total taxable rental income. Your tax relief is subject to a maximum reduction as outlined below.

You will only qualify for one reduction regardless of the number of qualifying leases you may have.

The maximum reduction allowed each year

For further information, please see the Tax and Duty manual Part 23-01-23.

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