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Where Taxpayers and Advisers Meet

Tax on Sale of Land & Stables

Jash
Posts:1
Joined:Mon Nov 25, 2019 10:46 am
Tax on Sale of Land & Stables

Postby Jash » Mon Nov 25, 2019 11:35 am

A bit of background info. I am in the process of selling my private stable yard and land. Firstly I was a little surprised when I received a CPSE7 (Commercial Standard Enquiry Form) as the land has never been used commercially and has only been used for my own private use keeping my own horses there. However, my solicitor says this is normal, many of the questions will be irrelevant and as it is not residential this is the normal form to complete.

I have owned the land for 15 years, it was bought as agricultural land and I obtained planning permission for a change of use to Equestrian Use and had 3 stables built and later a riding surface. I have never opted to tax the tax for VAT.
The following is a section from the CPSE7:

19.2 Please state whether the Transaction is to be treated as a transfer of a business as a going concern
(‘TOGC’) and therefore outside the scope of VAT.
19.3 If enquiry 19.2 does not apply, is the Transaction standard-rated for VAT purposes as a result of either:
(a) the exercise of an option to tax in relation to the Property; or
(b) compulsory standard-rating?
19.4 If the answer to enquiry 19.3 is yes, please provide a copy of either:
(a) the option notice given to HMRC, together with a copy of HMRC’s acknowledgement; or
(b) evidence of the reason that compulsory standard-rating applies to this transaction.
19.5 If the Transaction is not standard-rated for VAT purposes, please state if it is zero-rated, exempt or outside
the scope of VAT other than by reason of being a TOGC.
20. CAPITAL ALLOWANCES
20.1 Is there anything in the Property upon which a capital allowances claim can be based?
20.2 If the answer to enquiry 20.1 is yes, please give details and copy documents including the name and
contact details of your capital allowances advisor and confirm that we may make contact direct to ascertain any
required capital allowances information.

1. Am I correct to answer 19.5 to say that the land is exempt? As the other questions seem irrelevant as my answer to 19.2 would be no as it is not and never has been a business.
2. Ref 20.1 I will not be taking an election for Capital Allowances. Is this really relevant anyway as there is not plant or machinery on the land just 3 wooden stables?

Lastly will I be liable for any more taxes. I understand I will have to pay Capital Gains Tax.

Thanks in advance.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Tax on Sale of Land & Stables

Postby pawncob » Wed Nov 27, 2019 12:40 pm

Yes it's Exempt.
20.1 is No.
The only tax due is CGT.
With a pinch of salt take what I say, but don't exceed your RDA


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