Agricultural property transfers

Agricultural property transfers

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Mother and Father have farmed land for many years but have now retired. They are transferring land and buildings to their sons who are going to continue farming the land. As part of the land and buildings there are 3 farmhouses, 1 is occupied by the Mother and Father and the other 2 by the sons.
Can these farmhouses qualify as agricultural property and therefore qualify for CGT holdover relief under S 165?
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By User deleted
26th Feb 2007 18:03

At first glance, no
We are not advised of any relationship, apart from blood, that existed between parents and sons. So we are not looking at cottages occupied by agricultural workers employed by a farming partnership but , seemingly, private residences provided rent-free for children. HMRC have got very hot on "farmhouse" claims" : this is a property, they say, from where the farming business is operated and managed. Sorry, but I've never come across three HQ's for one farm.
By now, you will have gathered that, on the facts presented, I don't consider CGT hold-over is a runner unless (and I pre-empt the almost inevitable) trusts are contemplated.

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