Farming
06/09/1990
Query
How are the payments received under the EEC Scheme of Installation Aid for Young Farmers taxed?.
Decision
The scheme, which was introduced by EEC Council Regulation No. 797/85 provides for the payment to farmers of a single premium. Such a payment may be treated as a capital sum which will not give rise to a charge to Capital Gains Tax as there is no disposal of an asset.
Income Tax
Section 655, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT903118
20/06/1991
Query
What is the taxation treatment of sheep headage and ewe premium payments?.
Decision
All headage payments and ewe premia are trading receipts for tax purposes.
Income Tax
Section 655, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT913063
16/07/1991
Query
A farmer avails of the EC set-a-side scheme and instead of leaving the land fallow grows trees. Are the set-a-side payments in respect of that woodland, which is managed on a commercial basis and with a view to the realisation of profits, exempt from income tax?.
Decision
Payments under the EC schemes for set-aside of land are assessable under the rules of Case I of Schedule D. The payments are to reimburse the farmer for the loss of income which would have accrued had he continued to till the land. Where a farmer receives payments under the set-aside scheme, and afforests the set-aside land, the payments will not be derived from the occupation of woodlands. They will still represent loss of income which would have accrued had tillage continued, and are not therefore exempt under Section 232 Taxes Consolidation Act 1997.
Income Tax
Section 65, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT913022
31/08/1995
Query
Where compensation is paid for the non-allocation of a milk quota to a partnership can each of the partners claim the reduction outlined in article 1.3 of Tax Briefing No. 14?
Decision
No. The reductions outlined in the article should be applied to the compensation amount received by the partnership with the reduced amount forming part of the trading income of the partnership for the year of receipt.
Income Tax
Section 655, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT953538
31/08/1995
Query
Are payment from the Department of agriculture under the Flood Damage Relief Scheme 1995 chargeable to Income Tax?
Decision
Yes. It is the Revenue view that these payments, which are in respect of the loss of livestock or fodder, are income receipts liable to income tax in the hands of the recipient.
Income Tax
Section 655, Taxes Consolidation Act, 1997
Origin: RLS Division
File ref:IT953512