Capital Gains tax and roll-over relief

[Agrivator]

A farming partnership bought a retail premises in the local village about six years ago, paid tax on the rent, and sold it recently with significant capital gain of about £40k.

In the meantime (over the last three years and possibly this year also) the farm has invested in livestock buildings and concreting - both of which are subject to the derisory writing-down allowance. What proportion of this capital investment can be allowed as roll-over relief?

 

[Clive]

none I think ? the property investment gain is not the same trade as the capital expenditure, the only property that you (used to) be able to roll over into was furnished lettings (holiday property)

but get professional advise on that

 

[Nearly]

Buildings on your own land are a capital expense and 4% (?) a year.
Panels and replacement ( ) concrete floors are repairs or allowable at 100% against income tax
They are not a capital investment and cannot be rolled over into.

There is a list on hmrc site of what can be rolled over into.
Local brickyard owner sold the yard for hpuses and ran a helichopter for a few years as you can roll money over into aircraft!

You have 3 years forward or one year back from transaction date.
It could all change in budget?

Accountants are flat out at the moment sorting bigger problems than yours before the budget.

If you can argue the retail unit was a farm building you might get it at 10/20% cgt rather than 'full rate' cgt.

 

[David.]

Sure it's not 3yrs backward?

 

[Nearly]

Sure it's not 3yrs backward?

I wish it was.

 

[David.]

I wish it was.

Sorry, got my forward/backwards mixed
You have 3 yrs after the transaction to buy a qualifying asset, of course.

 

[Regenerator1]

Buildings on your own land are a capital expense and 4% (?) a year.
Panels and replacement ( ) concrete floors are repairs or allowable at 100% against income tax
They are not a capital investment and cannot be rolled over into.

There is a list on hmrc site of what can be rolled over into.
Local brickyard owner sold the yard for hpuses and ran a helichopter for a few years as you can roll money over into aircraft!

You have 3 years forward or one year back from transaction date.
It could all change in budget?

Accountants are flat out at the moment sorting bigger problems than yours before the budget.

If you can argue the retail unit was a farm building you might get it at 10/20% cgt rather than 'full rate' cgt.

It will all change at the budget...

 

[Regenerator1]

none I think ? the property investment gain is not the same trade as the capital expenditure, the only property that you (used to) be able to roll over into was furnished lettings (holiday property)

but get professional advise on that

I am told via a leak that holiday accomodation will get no perks in future as it is needed by the "workers" is this true??

 

[BenAdamsAgri]

HS290 Business Asset Roll-over Relief (2024)

www.gov.uk

 

[Still Farming]

Starmers budget 30th October will educate you too possibly???

 

[robs1]

A farming partnership bought a retail premises in the local village about six years ago, paid tax on the rent, and sold it recently with significant capital gain of about £40k.

In the meantime (over the last three years and possibly this year also) the farm has invested in livestock buildings and concreting - both of which are subject to the derisory writing-down allowance. What proportion of this capital investment can be allowed as roll-over relief?

You can go back one year and forward three years for "improving"new or existing fixed assets such as buildings or drainage, if you put up a building you probably need to use solid concrete or block walls not panels, especially if you've claimed tax relief on using panels previously, also drainage needs to be on new field scale projects not just "repairs" to existing ones which are claimable now.

 

[Regenerator1]

HS290 Business Asset Roll-over Relief (2024)

www.gov.uk

HS291 will be released on Halloween!!

 

[robs1]

HS291 will be released on Halloween!!

If reinvestment relief is removed then that will be one of the most stupid things a government has ever done, especially with al the song and dance they are making about today's meeting and the "claimed" shortfall in UK investment going back years

 

[Still Farming]

This clown is still kicking up a fuss here too.

The seven budget demands Mark Drakeford is making of the UK Government

The budget will be announced on October 30

www.walesonline.co.uk

 

[mixedfmr]

Sure it's not 3yrs backward?

Think it was one year back as i recall

 

[pellow]

I am told via a leak that holiday accomodation will get no perks in future as it is needed by the "workers" is this true??

If you are talking about self catering holiday accommodation, your leak is very slow as the perks were taken away by Jeremy Hunt in his last budget