How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Sam Your Own Question
Sam, Accountant
Category: Tax
Satisfied Customers: 14195
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Type Your Tax Question Here...
Sam is online now

If the owners of a parcel of agricultural land in Wales transfer

This answer was rated:

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?
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
Let me know if you require any furtehr assistance
Sam and other Tax Specialists are ready to help you