capital allowances when letting farm

[funcrusher]

I've tried to find this out on the Rev Commissioners website without success! our accountant is currently unreachable because he is snowed under with year-end tax returns.

My wife is a farmer and is considering the farm Early Retirement Scheme, under which a son would lease the farm from her for say 10 years. He would become owner of the machinery; but not the buildings, yards etc, some of which are fairly new and not yet written off.
Will my wife still able to claim annual allowances on the buildings and yards ie against the rental income received from the son?.

 

[philipdarcy]

Capital allowances on farm buildings can only be offset against farming profits. They cannot be used to reduce rental income.

 

[Joe1234]

our accountant is currently unreachable because he is snowed under with year-end tax returns.

That deadline (for the self assessed) passed a week ago!

 

[Joe1234]

There are generous tax exemptions for rental income for farm land if a lease is for a period of 5 years or more. Check www.revenue.ie for more info.