Cgt Rollover Qualifying Assets

[teslacoils]

Anyone got a list of qualifying agricultural assets that aren't fields?

I'm mainly looking at what others have considered as "improvements". Would drainage count, for example?

 

[Goweresque]

Definitely buildings, as I have recently reclaimed CGT paid on money used to build a new grain store. I think drainage and fencing would qualify, if there is none there now, and it was a completely new install. If you were replacing existing (but dilapidated) fencing or drainage then it would come under repairs and renewals and go against income tax. I think new concrete and track surfacing would qualify - if its an improvement over what is there (ie turning a hardcore yard into a concreted one, or tarmacking a hardcore track) then its a capital item.

 

[teslacoils]

Ty. I was wondering if the provisions to depreciate a building meant you couldn't use RR money.

 

[holwellcourtfarm]

Definitely buildings, as I have recently reclaimed CGT paid on money used to build a new grain store. I think drainage and fencing would qualify, if there is none there now, and it was a completely new install. If you were replacing existing (but dilapidated) fencing or drainage then it would come under repairs and renewals and go against income tax. I think new concrete and track surfacing would qualify - if its an improvement over what is there (ie turning a hardcore yard into a concreted one, or tarmacking a hardcore track) then its a capital item.

Sounds about right. I was discussing this with our accountants on Thursday. Looking to buy a farm later this year with rollover money. I specifically asked whether doing up a neglected house would qualify and was told it would not. New farm buildings qualify as does concreting a new yard. @Goweresque description of new drainage sounds within what our accountants described.

Building a new cottage for a worker or to let out probably qualifies as well but not a new farmhouse.

 

[chipchap]

Common sense dictates that anything that has been treated as a repair in your trading accounts is not eligible, and any improvement must be subject to any depreciation claimed. However common sense does not always apply!
A professional response would be welcome?

 

[teslacoils]

The unclear bit was a section which explained that depreciating assets with a life under 60 years weren't eligible. And now sheds can be written down over 25 years I was struggling to see if they were allowed. Ditto redraining as if the field had a poor, but functioning system and I put a new set of drains in-between the old ones is that a repair or improvement? Tbh, I'm just going to pay the tax.

 

[holwellcourtfarm]

The unclear bit was a section which explained that depreciating assets with a life under 60 years weren't eligible. And now sheds can be written down over 25 years I was struggling to see if they were allowed. Ditto redraining as if the field had a poor, but functioning system and I put a new set of drains in-between the old ones is that a repair or improvement? Tbh, I'm just going to pay the tax.

You should get away with a shed but you used the phrase "redraining" yourself so that's a no imho.

 

[chipchap]

A good accountant will tell you the position by the letter of the law, and also guide you how far the law might be bent, subject to the discretion of the taxman.

Business Asset Roll-over Relief (Self Assessment helpsheet HS290)

Find out how to claim Business Asset Roll-over Relief.

www.gov.uk

 

[Goweresque]

Building a new cottage for a worker or to let out probably qualifies as well but not a new farmhouse.

I'm pretty sure you can also buy a house for a farm worker to live in under roll over relief, I think my father did that many years ago.

I was wondering if the provisions to depreciate a building meant you couldn't use RR money.

I assume you can use one or the other but not both.

 

[Lincsman]

Space craft, to set up your own GPS... I kid you not.

 

[teslacoils]

Space craft, to set up your own GPS... I kid you not.

Yup. I think that cargo ships count too. Or something like that. But also no.

 

[BrianV]

I'm pretty sure you can also buy a house for a farm worker to live in under roll over relief, I think my father did that many years ago.



I assume you can use one or the other but not both.

We used RR successfully to buy a farm workers barn conversion a few years back, it has to be something new rather than repairing something already existing I believe.