IFA Farm Business Chair Rose Mary McDonagh said changes to the tax exemptions on long-term leases of farmland will not apply to anybody who inherits land, following recent amendments to the Finance Bill.
“The amendment to exempt gifts and inheritances is vitally important to ensure land mobility is not impacted as a result of these changes. It is positive to see that amendments, which IFA campaigned for, have been included to ensure this is the case.”
“There was a real concern among farmers that land transferred via gift or inheritance would be impacted by the changes to the tax treatment of land lease income that were announced in Budget ‘24. The recent amendments now ensure that this will not be the case, which is a positive outcome,” said Ms McDonagh.
From January 1st next, any individual who purchases land cannot avail of tax relief on lease income from this land for a period of seven years after the contracted purchase date of the land. However, this change will not apply to land acquired via gift or inheritance.
“IFA will continue to engage with Government on issues relating to tax legislation as it applies to agriculture to ensure that farmers best interests are looked after in any changes introduced,” Ms McDonagh concluded.