Patrick Deering
Question:50 Deputy Pat Deering asked the Minister for Finance if he intends continuing the land leasing tax exemption as this improves land mobility and efficiency of land use. [36830/12]
View answerThursday, 19 July 2012
Questions (50)
Written answers
Relief for certain income from long-term leasing of agricultural land is currently provided for under section 664 of the Taxes Consolidation Act 1997. The exemptions are available to all landowners over 40, or those who are permanently incapacitated from carrying on farming, who lease agricultural land. Under the current provisions there is an exemption from income tax in respect of:
The first €12,000 of annual leasing income where the leasing is for a period of not less than 5 years;
The first €15,000 where the leasing is for a period of not less than 7 years, and
The first €20,000 where the leasing is for 10 years or more.
The aim of the scheme is to provide the lessee with a greater degree of security thus encouraging the proper maintenance and development of the land. Longer term leases enable those who rent the land to make better long term investment and planning decisions. The measure is intended to facilitate the more productive use of the land. As the Deputy states it assists in improving land mobility and addressing the shortage of land available for young progressive farmers. Like all tax or expenditure measures the land leasing exemption will fall to be considered in the context of the ongoing development of budgetary and economic policy. It should be noted that, in common with other such schemes, any changes to the land leasing exemption would be subject to EU State aid approval.