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Where Taxpayers and Advisers Meet

Roll over Relief on disposal of agricultural land

simpsonite
Posts:105
Joined:Wed Jun 24, 2009 11:58 am
Roll over Relief on disposal of agricultural land

Postby simpsonite » Fri Jul 01, 2022 3:07 pm

Hello,
A client of mine disposed of £700k agricultural land back in 17/18.
Previous accountant made a provisional roll over relief for the entire gain.
(This was never dealt with further by previous accountant for a valid claim and now sits across my desk!)
I have acquired a split of the £700k land sold ( £545k land and outbuildings £155k planning consent for a 3 bed agric tied dwelling & mobile home)
The client lived in the mobile home.

Client bought a new farm for £741k (£526k farmhouse. land and outbuildings£215k)
I am correct in stating that the gain on disposal of the agricultural land cannot be rolled over into the farmhouse other than elements of the farmhouse that relate entirely to business activities?
So, with an amount far less than proceeds having been reinvested in the new land & buildings, the rollover over gain £237,264 is not available & will crystalize in full!

Would there be scope to argue that the £155k proceeds relating to plannign permission for a 3 bed agri tied dwelling including the mobile home would be exempt from CGT under 'hope valuation' as a private dwelling?

Thoughts appreciated
Thanks

pawncob
Posts:4913
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Roll over Relief on disposal of agricultural land

Postby pawncob » Tue Aug 02, 2022 10:01 am

Surely, as he's never occupied the property, there can be no PPR claim.
https://www.ensors.co.uk/blog/Principle-Private-Residence-relief-and-land-development-gains/
With a pinch of salt take what I say, but don't exceed your RDA


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