Warning to Kilkenny farmers and landowners leasing land for wind farms
Kilkenny farmers and landowners are being urged to be fully aware of what they are signing up to if they make arrangements with renewable energy companies to lease land.
Ifac, Ireland’s leading farming, food and agribusiness professional services firm, is encouraging all landowners in Kilkenny to make certain that they understand their tax responsibilities and the fact the land may be disqualified as an agricultural asset once the lease is completed.
Ifac says that 2020 has led to an increased interest in solar and wind farm companies looking to enter into option agreements with landowners to acquire their land to potentially erect solar panels or wind turbines, which is a potential game-changer for the agri-sector and also towards the reduction in carbon emission nationally.
However, Ifac warns some “ambiguity” exists about some of the tax treatment of the renewables.
It stressed the typical contract the company is looking to enter into with the landowner needs careful legal and tax consideration. And they urged local landowners to not lose sight of the potential succession issues around the possibility of disqualifying the land as an ‘agricultural asset’.
Landowners are also urged to take legal and professional tax advice to better understand their rights and obligations.