Client is about to lease farm land to a renewable energy company on a 25 year lease. This is going to trigger the clawback of CAT and SD reliefs that were claimed by my client a couple of years ago. Approx €150k of tax relief clawback. As part of the agreement, the renewable energy company will indemnify client for any CAT & SD tax liabilities. Is the indemnity payment effectively a lease premium? or what is the correct treatment of indemnity payments for my client?
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