Farm incorporated May 2004. Previously traded as sole trader with Buildings and Land as Assets but did not transfer these to company. Land and Buildings registered title transferred from Father October 01. Sold approx half of land Sept 2006. (now wanting to wind up company)
Any tax planning advice?
Any suggestions on how to value the acquisition of this part of land which was transferred into ownership October 2001?
Jane Dance
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A good valuer, for one
So the farmhouse might have earned full PPR exemption in 2001 but didn't father report the deemed sale of other buildings and the agricultural land? On both parts, the son has a market value acquisition unless a hold-over election was made. If so, research needs to be done to ascertain father's original cost or 1982 value, rather than that at date of gift. Looks to me as if the services of a good valuer would come in handy, to say the least, in addition to historical fact gathering.
Maximising BATR will be the greatest help: the first sale in September should attract this in full . As to the remainder: wind-up the company formally or informally and distribute capital to the shareholder as quickly as possible after ceasing to trade. You do not want to see BATR diluted to any extent.