Cahill angry at Revenue decision

THE new ICMSA president Jackie Cahill has claimed that the Revenue Commissioner’s treatment of the single-farm payment in lease agreements completely undermines the Government’s policy to encourage land leasing.

He said the tax relief from rental income of farmland was actually increased in Budget 2006. However, the Revenue’s decision notes that the relief will not apply to the single farm payment part of any lease arrangement.

“Even where the lease agreement does not contain a figure for the single-farm payment drawn down by the farmer who leases the land, the person leasing out the land will be obliged to identify the amount due for the single-farm payment and make a tax return for this amount. This income will not be treated as rental income of farmland and therefore will not qualify for the relief.”