Yes, I received a small payment annually in respect of the business use of the land. The business is growing watercress and routinely the beds are cleared and all water+silt removed. This was pumped over to the field where the silt would settle out and water drain away, all very interesting!
The sale of the land generated four shares of approximately £193K after expenses. The value of the land at original transfer was £50k, which I have assumed would also be split 4 ways, thus the net gain to me would be £180,500 (£193K-£12.5K). The payment occurred in the last week so I have assumed that the allowance would be £10,900 leaving CG tax to pay on the remaining £169,600. Does that help?
Sorry to confuse, the £193K was the value of each individual share and not the total. Re-working those numbers suggests that my quarter of the sale (193K) less my quarter of the initial cost (12.5K) results in a gain of £180,500. Take off AEA of 10.9 leaves £169,600. Even with up to 40K of lettings allowance (and it was considerably less than £40K) I suspect that I am still exposed to a potentially hefty CG bill :-(
I regret that you are and there is very little you can do to abate the tax. Roll-over Asset relief is not available for this sort of transaction, the land must be used for a trade or business, you could try, but in my opinion HMRC would cast a very jaundiced eye over the usage. The only consolation is that you have made and realised a gain. CGT is a very nasty tax which can creep up on one unexpectedly. I advised on the tax a couple of yours ago for an individual where the re-acquisition of his own property was going to incur a 50K tax bill, gulp! He had agreed with the owner, a relative, to pay that relative's CGT.
It is much as I suspected though I thought it had to be worth asking, just in case!
As I said it is always worth a try! Thank you for your support.