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Tony Tax
Tony Tax, Tax Consultant
Category: UK Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Four family members have owned a small field for 7 years, originally

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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
Hi.

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.
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Customer: replied 4 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 !


 

Thanks.
Customer: replied 4 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,
Maureen

You've already paid. Thanks and good lcuk.

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