Exemption of Certain Income From the Lease of Farmland

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Section 664 of the Taxes Consolidation Act 1997 provides for a relief to be applied where farmland is let under a qualifying lease, by a qualifying lessor to a qualifying lessee.




The farmland must be in the State, and land used wholly or mainly for the purposes of husbandry.


Qualifying Lease:

A qualifying lease must be in writing, or evidenced in writing.  If the lease is not in writing, a note in writing should be requested, this note should contain:

  • names & addresses of the lessor & the lessee,
  • the acreage & address of the land,
  • the terms of the lease – a qualifying lease must be for a definite term of at least five years.

The terms of the lease must be on an arms length basis – ie – a fair market rate.


Qualifying Lessor:

The lessor cannot themselves have leased the land on favourable terms.


Qualifying Lessor:

The lessee must farm the land on a commercial basis with a view to making a profit.


Connected persons:

The lessor & lessee must not be connected.  The relief is not available for leases between connected persons.

Connected persons are:

  • immediate family – parents, siblings, children, grandparents, grandchildren,
  • Spouse / civil partner of the lessor,  and / or their immediate family,
  • Business partner of the lessor, and / or their immediate family.


How the Relief is given:

The qualifying lessor is entitled to a deduction from their total profits when computing the amount chargeable to tax.

The deduction is the lower of :

  • the overall rental profits / gains, or
  • the specified amount.

Specified amount


Contact us today to see if this relief is applicable to your circumstances, & talk about all other available reliefs.