Farm buildings allowance
18/05/1979
Query
Farmer lets farm buiding to partnership in which he is a partner; is Farm Buildings allowance due
Decision
Yes, provided the buidling is let at market value and the payment is not in respect of services to the partnership. If the farmer introduces the buildings into the partnership, the capital allowances would go to the partnership
Income Tax
Section 658, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT922026
27/05/1992
Query
A farmer proposes to transfer his farm to a trust under which he would retain a life interest with remainder interests to a discretionary settlement in favour of his children. The issue arising is whether the person would not be regarded as having transferred his interest to another person for the purposes of Section 658(9) Taxes Consolidation Act 1997, having regard to the retention of a life interest in that asset and to the fact that it is he, rather than the trust, which will be continuing the trade of farming on the land.
Decision
Where a person transfers a farm to a trust, with the retention of a life interest, there will be a transfer for the purposes of Section 658(9) Taxes Consolidation Act 1997.
Income Tax
Section 658, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT923025