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Sam
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Category: Tax
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If the owners of a parcel of agricultural land in Wales transfer

Resolved Question:

If the owners of a parcel of agricultural land in Wales transfer their personal ownership into a company owned by the same owners, and at no monetary cost, is there any tax to pay?
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question - I am Sam and I am one of the UK tax experts.
Yes you would have capital gains to pay (which might be elevated by entrepreneurs relief if the land has been used within a trade for the last 3 years)
This would be formed by the value of the land now at market value, less the purchase/acquisition cost of the land (or value in 1982 due to rebasing) this would form the initial gain -
Then this amount would be shared out among the owners - from which he first £11,100 would be tax free (as this is your annual exemption allowance) and then either charged at 18% and/or 28% (depending on each of the individuals annual income) or at 10% if entrepreneurs relief applied.
Link here re the entrepreneurs relief https://www.gov.uk/entrepreneurs-relief/eligibility
Let me know if you require any furtehr assistance
Thanks
Sam
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