Only as far as it will be built on land which is part of his farming land, but the house is intended to be sold once completed. Building permission is being obtained under the Government Permitted Development policy.
Thank you for your prompt reply.
You may be thinking of business asset rollover relief.
If you were to sell business assets and make a capital gain then you can choose to avoid paying the CGT by purchasing new business assets and making a claim for what is called ‘Business Asset Rollover Relief.
To benefit from the relief you must reinvest the sale proceeds in new business assets. They do not have to be used in the same trade. For example you could sell your sweet shop and use the money to buy a farm, or an engineering business.
It would appear from your scenario that you are selling a business asset and not investing the proceeds into another business asset and therefore would not qualify for business asset rollover relief.
More information on business asset rollover relief can be found here
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
I notice you have viewed my answer to your question about rollover relief (JACUSTOMER-h0mxbdxw- Last Viewed on 07/01/2015 at 17:05).
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Thank you for your prompt response, this concurs with my views.
I have already rated your reply.