Leasing of farmland – manual updated

The Tax and Duty Manual (TDM) providing guidance on the income tax relief available on income from the lease of farmland, under section 664 TCA 1997, has been updated.

Revenue eBrief No. 179/20 confirmed that TDM Part 23-01-23 has been updated and amended to include the contacts of TDM Part 23-01-24 “Farming-Relief for certain income from leasing of farmland. Lessee must use land for a trade of farming.”, which will be archived.

In addition to the above, TDM Part 23-01-23 has been updated:

• In 2. Qualifying lease: the meaning of “definite term” is explained in more detail;
• In 3. Qualifying lessor: it is confirmed that an individual who is tax resident in another jurisdiction may qualify for relief;
• In 4. Qualifying lessee: a new example has been added; and
• In 7. Spouse, civil partners and joint lessors: a new example has been added.