Conacre is a uniquely Irish term and is a system of letting agricultural land on a short-term basis. Conacre first developed during the 19th century and land was normally let on an eleven-month system. This was considered to be of sufficient length to sow and harvest a crop but without creating a relationship between landlord and tenant.
At that time, holding the land under conacre granted no legal rights to the land with rent being paid in cash, labour or a combination of both. In Wexford, conacre land was used almost exclusively for the potato crop.
Conacre in Wexford and across the country is still very popular today. There are some impending tax relief changes ahead for those who intend to eventually sell their land to a third party that is currently let out on a short-term basis.
Farmers who are currently renting their land out through short-term lets and who intend to eventually sell it (to someone other than their child) must act between now and 31st of December 2016 to ensure they can avail of Capital Gains Tax retirement relief into the future.
If you are in this position, you have the option to either:
- dispose of the land on or before the 31st of December 2016; or
- convert the short term let to a long term lease (minimum 5 years).
For help and advice on these options, contact us today.