Taxes Consolidation Act 1997 section 664

Relief for certain income from leasing of farm land

Section 664 provides income tax relief for individuals who lease farm land under qualifying leases, with the amount of relief depending on the duration of the lease and when it was entered into.

• Farm land leased under a written lease of five years or more, on arm's length terms between unconnected parties, qualifies for an income tax deduction of up to €40,000 per annum depending on the lease term.
• The lessor must be an individual; the lessee (individual or company) must use the land for a genuine trade of farming and must not be connected with the lessor.
• Farm land purchased on or after 1 January 2024 is subject to a seven-year holding requirement before relief can be claimed, with anti-avoidance rules targeting transfers to connected persons, below-market-value transactions, and land exchanges.
• Each spouse or civil partner is entitled to a separate relief, and payments linked to the transfer of EU CAP direct payment entitlements with the land are treated as qualifying rent.

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