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Joshua
Joshua, Lawyer
Category: Property Law
Satisfied Customers: 26070
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I am selling about 200 acres of deciduous woodland over 100

Resolved Question:

I am selling about 200 acres of deciduous woodland over 100 years old, predominately mature oak, but which has not been managed since coppicing of hazel stopped about 40 years ago except in certain places chosen for shooting purposes. As I understand the position CGT is only payable on the value of the land, and the value of the trees is exempt. How does a valuer draw the line between the value of the land and the value of the trees in a case such as this?
Submitted: 3 years ago.
Category: Property Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

From what you say am I correct to understand that the woodland has been run as a business enterprise please rather than just an investment in the land?

Customer: No, it has just been treated as an investment in the land.
Joshua :

Sorry for the delay in reverting to you.

Joshua :

You are quite correct in respect of what you say but the exemption unfortunatly does not apply across the baord. s250 of the Taxation of Chargeable Gains Act 1992 is the relevant provision to which you refer.

Joshua :

This section provides inter alia: Consideration for the disposal of trees standing or felled or cut on woodlands managed by the occupier on a commercial basis and with a view to the realisation of profits shall be excluded from the computation of the gain if the person making the disposal is the occupier.

Joshua :

I have highlighted the crucial words above. Unfortuantely the relief afforded by s250 restricts itself to woodland which is managed on a commercial basis and with a view to the realisation of profits. It does not apply to amenity woodland. Accordingly you will need to be able to show that you have managed the woodland on a commercial basis in order to avail yourself of the relief

Joshua :

Subject as above you would employ a rural valuer - often a RICS qualified surveyor that specialises in forestry and woodland in order to value the land and the timber. His valuation is agreed with the Valuation Office upon submitting to HMRC and HMRC will challenge any aspects of the valuation they are unhappy with which is then for your surveyor to justify.

Joshua :

Is there anything above I can clarify for you any further?

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