Would this work to get ER
Client farmer is getting on a bit. He owns the freehold to two farms personally and he is a 50:50 partner with his wife in a trading farm partnership.
Farm A has been passed down through the generations and Farm B was acquired by him about 20 years ago.
Both farms are controlled out of 1 farmhouse and it is effectively one farming business carried out over the two pieces of land.
He wants to sell farm B because work is getting on top of him and wants to downsize.
I have explained that ER would not be available on the disposal of the Farm B given that he is not retiring or giving up his business. He is merely reducing the scale of operations. That unfortunately is not what ER is about.
It has been suggested to me that to help this case, we could have Mr Farmer reduce his interest in the farming partnership from 50% to 25%, the wife becoming a 75% partner in the trading partnership and thereafter Farm B is disposed of. Thus giving the opportunity to bolt the disposal of Farm B onto the disposal of half his interest in the business as an associated disposal.
I think it is very contrived and open to question, but upon reading the legislation it would appear to be an option.
What do others think.
- RTI Annual Scheme Query 118 3
- Reregister for VAT 97 1
- Would this save hours of your time? 425 11
- Director's tax return 247 6
- Keep receiving RTI late submission notice 191 6
- Value pricing 669 23
- PAYE coding notice - deliberate misstatement 45 2
- Producing graphical KPI's etc 180 5
- Wrong career 453 18
- Payroo Employer allowance query 127 1
- MONEYSOFT - EARLIER YEAR UPDATE 262 7
- Laptop purchase 1,375 20
- PTP software disaster 255 2
- CIS repayment shambles finally over? 219 2
- Treatment of EU Purchases on Sage 96 2
- Tricky VAT question 169 1
- VT accounts licence key 259 5
- Weely paid employees 221 2
- Splitting the tax year 104 1
- FPS Submission 154 2
- Residential Property Purchase Above £750K 792
- Using Sage with Sofa Categories 546
- Does anyone have an unwanted ICAEW wooden plaque? 413
- Goods shipped inter EU and VAT Reporting 292
- Free Tax Legislation? 261
- Director Loan account operation 241
- transferring simply accounting 2010 from xp to windows 7 237
- Non-Resident Director - UK Tax Position? 236
- Sage 200 and Access Dimensions reviews 229
- Paye procedures for CVA 159