Vol. 556 No. 5
122 Mr. Sargent asked the Minister for Finance if he will remove pre-determined qualifications or age restrictions from the proposal to consider tax incentives for long-term leasing of land as a means of increasing land supply, in view of the fact that this issue affects long-term viability for all farmers. [20985/02]
Under section 664 of the Taxes Consolidation Act, 1997 there is an exemption from income tax in respect of the first €5,078.95 of annual leasing income where the leasing is for a period of not less than five years and in respect of €7,618.43 where the leasing is for a period of not less than seven years. The exemptions are available to lessors of agricultural land aged 55 years or over or to those who are permanently incapacitated by mental or physical infirmity from carrying on farming. These tax exemptions apply only in respect of leases to qualifying lessees. In this context, "qualifying lessee" specifically excludes from the scope of the relief any leases made between closely connected relatives. As the Deputy will appreciate, in accordance with the usual procedure in the period prior to the budget, it would not be appropriate for me to comment one way or the other in regard to the suggested taxation changes referred to by the Deputy.
