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Selling of farm partnership

bigdog123
Posts: 1
Joined: Wed Jan 11, 2017 10:13 am

Selling of farm partnership

Postby bigdog123 » Wed Jan 11, 2017 10:18 am

Hi, I have been a shared partner in the family business for 40 years. My parents both passed away a couple of years ago, and I inherited their share of the business. I am now the only partner in the business. I am looking to retire in the next few years, and my son who works on the farm, had said he does not want to take over the running of the farm. I have been advised by another farm owner that if I sell the business then I will have to pay between 40% and 48% capital gains tax. This sounds a lot, and I can't find any reference to these figures online. Please can someone advise if this is correct?

pawncob
Posts: 3845
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Selling of farm partnership

Postby pawncob » Wed Jan 18, 2017 1:07 pm

if it qualifies, you're entitled to Entrepreneurs Relief, which limits the CGT payable to 10%.
Take professional advice before you sell.
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg63955
With a pinch of salt take what I say, but don't exceed your RDA


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