Tax Relief on interested from a farm mortgage

J

JamesC

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Hi, I was think of buying a small farm and would need a loan or mortgage to do so. Can the interest on this loan be written off against PAYE tax? Thanks
 
The trade of farming may create a loss. Losses are allowed to be offset against other income in the current year.

Hobby farming losses are allowed for 3 years then the loss can be carried forward against future farm profits.
 
Thanks Joe 90, can the interest of a loan to buy the property be including as a loss?
 
Joe_90 said:
The trade of farming may create a loss. Losses are allowed to be offset against other income in the current year.

Hobby farming losses are allowed for 3 years then the loss can be carried forward against future farm profits.
Click to expand...

Losses from hobby farming are not allowed to be set off sideways.

From Revenue' Notes for Guidance ([broken link removed]
A loss incurred in farming or market gardening may not be allowed against other profits unless the claimant can show that the farming or market gardening was being carried on on a commercial basis and with a view to profit. In addition to, and independently of, this test, loss relief is not allowed if losses have been incurred in each of the 3 preceding years
 
Happy New Year, Mandelbrot,

I'm aware of S 662 and on the basis that lots of "commercial" businesses may make losses in the first few years, a farmer can justifiably claim that it's very difficult to make a profit in the first few years.

As long as the OP is not a property developer impersonating a farmer I don't think the section would apply. But of course you are correct to make reference to the Section.
 
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