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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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, if I inherit some agricultural land, and sell it for £100,000

Resolved Question:

, if I inherit some agricultural land, and sell it for £100,000 - what are the tax implications, would I be better off spending it on the farm, and how long have I got to spend it?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
.

Can you tell me if you own and run a farm already please. Is the land you may inherit or have already inherited farmed by you already? What is or was the land worth when you inherited it?
Customer: replied 2 years ago.

I own & run the farm in partnership with my mother. Have already inherited it, and no, its not farmed by me already. It has been sold now for £100,000 (current value)

Expert:  TonyTax replied 2 years ago.
What was the land worth when you inherited it?
Customer: replied 2 years ago.

probably £100,000 - if it was less (as land is increasing in value) - does this affect things?

Expert:  TonyTax replied 2 years ago.
Thanks.

You will only have Capital Gains Tax to pay if you sold the land than it was worth when you inherited it. In addition, the first £11,000 of gains you make in the current tax year will be exempt from CGT.

Had the land been farmed by you, it would have constituted a business asset and you could have deferred some or all of the gain by investing in new business assets between 12 months before and 36 months after the disposal of the business asset. Take a look at HS290 here information. I think you will find it difficult to claim the relief if there was no business use of the land by your business.

I hope this helps but let me know if you have any further questions.
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