Capital Gain Tax - selling agricultural land in stages

With regards to sole trading losses being offset against Capital Gains: as far as I am aware, such losses can only be offset against capital gains in the same year; meaning that trading losses cannot be carried forward and offset against capital gains in any following year.

I have a client (a farmer) who is likely to make a trading loss of around £35,000 in the year to 5 April 2011.  Similar losses are anticpated in the year to 5 April 2012.  The sole trading activity is then likely to return to a profit in the year to 5 April 2013.  The client is currently negotiating the sale of some agricultural land; being 1 of 3 seperate but ajoining fields.  The sale is likely to result in a capital gain of around £80,000.  The vendor is likely to pay for the field over two years; simply because he can't afford to pay for it in one go.  Because of this, the client assumes the title deeds would either: not register the new owner until full payment had been received, or would register part of the field as and when it's paid for.  I don't really know how this would work.  Incidentally, the Land Registry title treats all 3 fields as one plot, but specifies its division into 3 fields, each seperated by hedge rows.

On the basis of the above: could payment be split over 2 years; meaning half of the field is sold in 2010/11, generating a gain of only £40,000.00, with the remainder applicable to 2011/12, generating a further £40,000?

 

 

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