Tax advice

[Alwaysinit]

The farm is in a partnership agreement between myself and my wife.
If we were to sell a building plot we have on the farm and reinvested the money in buying more land do you pay tax on the money gained from selling the building plot?
I will look for some professional advice in due course but in the mean time I was wondering if anyone has done similar and if it's straight forward.

 

[TheTallGuy]

https://www.gov.uk/business-asset-rollover-relief

 

[Still Farming]

Tax on everything most probably.
The more you get the more you pay?

 

[robs1]

The farm is in a partnership agreement between myself and my wife.
If we were to sell a building plot we have on the farm and reinvested the money in buying more land do you pay tax on the money gained from selling the building plot?
I will look for some professional advice in due course but in the mean time I was wondering if anyone has done similar and if it's straight forward.

You should get roll over relief

 

[livestock 1]

The farm is in a partnership agreement between myself and my wife.
If we were to sell a building plot we have on the farm and reinvested the money in buying more land do you pay tax on the money gained from selling the building plot?
I will look for some professional advice in due course but in the mean time I was wondering if anyone has done similar and if it's straight forward.

There will be a value on the land probably at last point of sale whenever that was. The increase on value will be taxable. Not sure how rollover works in this case as it’s usually like for like so yours is possibly commercial to agricultural but could be wrong it’s still only land until it’s developed. What status was it at when you sold it? Did you get planning?

 

[robs1]

There will be a value on the land probably at last point of sale whenever that was. The increase on value will be taxable. Not sure how rollover works in this case as it’s usually like for like so yours is possibly commercial to agricultural but could be wrong it’s still only land until it’s developed. What status was it at when you sold it? Did you get planning?

Roll over is for ( virtually) any business asset to another business asset , roll over relief is why farmland is expensive

 

[Derrick Hughes]

I undestood it was just land now and buildings on it ,you could no use itvagaist building a new shed , correct me if im wrong

 

[Jerry]

Roll over is for ( virtually) any business asset to another business asset , roll over relief is why farmland is expensive

Roll over relief is why 100acres next door just sold for £20k an acres…for mainly grass!

 

[livestock 1]

Roll over is for ( virtually) any business asset to another business asset , roll over relief is why farmland is expensive

I’m not sure about that in some cases like for like applies

 

[Derrick Hughes]

You may still be able to get Entrepreneurs relief that reduces rate to 10% if its still available

 

[Alwaysinit]

Thanks everyone.
Seems like a bit of a minefield and as usual Mr. HMRC doesn't like you to hold on to any money you may make.
It is a bare field at the minute with winter crop in it but I do have the full planning permission with plans passed for a single bungalow on it.

 

[Blue.]

Build bungalow yourself,live in it for two years,sell tax free.

 

[serf]

Thanks everyone.
Seems like a bit of a minefield and as usual Mr. HMRC doesn't like you to hold on to any money you may make.
It is a bare field at the minute with winter crop in it but I do have the full planning permission with plans passed for a single bungalow on it.

Was land purchase I recent times or will it be 1984 for CGT valuation

 

[Alwaysinit]

Build bungalow yourself,live in it for two years,sell tax free.

That was the plan but things have changed. But I was also told today that if HMRC thinks that was you're intention all along then they can come at you for tax. How they prove it was you're intention all along I'm not sure.

 

[serf]

live in it for two years,sell tax free.

Or on paper at least

 

[Alwaysinit]

Was land purchase I recent times or will it be 1984 for CGT valuation

I wouldn't be selling any farm land, just the building plot in the corner of one field. The land has been in family for atleast 3 generations.

 

[serf]

I wouldn't be selling any farm land, just the building plot in the corner of one field. The land has been in family for atleast 3 generations.

Presume the plot will have to be valued from 80s to the value now to evaluate the CGT

 

[Alwaysinit]

Presume the plot will have to be valued from 80s to the value now to evaluate the CGT

That could be quite a bit

 

[serf]

That could be quite a bit

You say the land has been in the family for 3 generations, is it in your name now and before you gained PP or an older generations

 

[Alwaysinit]

In my name about 15yrs and PP gained about 3 yrs ago.