Leases of farmland for solar energy development
Revenue has clarified in eBrief No. 53/16 (more details here) that the tax relief provided by section 664 TCA 1997, which exempts income derived from certain leases of farm land, does not extend to a lease of land by a solar energy company for the purpose of the installation of solar panels.
Such activities are not regarded as a trade of farming with a view to the realisation of profits for the purpose of section 664 TCA 1997 notwithstanding that the company may agree to occupy some of the land around the solar panels for the purposes of husbandry on a commercial basis. Therefore, unless the company can demonstrate that they are carrying on two distinct businesses and that the land is wholly or mainly occupied for the purposes of husbandry, relief will not be available.
Revenue has published a new Tax and Duty Manual which provides further details.