The land element of a disposal of commercial woodlands is liable to CGT but will it attract entrepreneur relief?
John R
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Can IHT and CGT be hugely out of step?
Over the years, I had no difficulty in finding loads of verbiage on the taxation of felling and selling trees but precious little on the underlyng land where commercial woodland was in the frame.
I have proceeded on the basis that , in the context of CGT, such land is categorised as of the business-type, one clue being the availabilty of roll over relief. Another clue, for me, was the IHT treatment . Yes, I am aware that IHT and CGT are not totally synchronised (eg: FHL would attract ER but not necessarily BPR) but woodlands run on a commercial basis do obtain 100% BPR
and frankly feel it inconceivable that, unless there is a specific exclusion in the 2008 Finance Act, ER would be denied.