How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Tony Tax Your Own Question
Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
Satisfied Customers: 15664
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your UK Tax Question Here...
Tony Tax is online now
A new question is answered every 9 seconds

Four family members have owned a small field for 7 years, originally

This answer was rated:

Four family members have owned a small field for 7 years, originally valued at £8,600. It is registered as grazing land and most of the field has been rented to adjoinig riding school for last 5 years for £1,000 p.a.
We will apply for outline planning permission, and if successful the field is likely to be sold for £1,000,000. Are we able to claim 10% Entrepreneurs Allowance when paying Capital Gains Tax?l

Unless you actually run a business from the land which you don't (letting land is not a business for ER purposes), you won't qualify for entrepreneurs' relief on the gain from selling the land I'm afraid. Take a look at HS275 for the qualifying criteria in detail.

I'm sorry that my answer is not what you wanted. Let me know if you have further questions.
Tony Tax and 2 other UK Tax Specialists are ready to help you
Customer: replied 3 years ago.

Many thanks for a very helpful reply although don't think we'll be very happy ("gutted" seems an appropriate word!) to have to possibly pay Inland Revenue several hundred thousand pounds CGT !


Customer: replied 3 years ago.

Many thanks-you've answered my question very well. Now know the situation regarding rented grazing land and Entrepreneurs Allowance if paying capital gains tax . No further questions so please claim your charge.
Kind Regards,

You've already paid. Thanks and good lcuk.

Related UK Tax Questions