Can somebody please advise if the sale of a non residential equestrian smallholding falls into the 18% or 10% tax band. The owners are both basic rate tax payers who are employed. The property was originally purchased 14 years ago as agricultural land and the owners have added value with a menage and stables and a change to equestrian use (private not commercial). They are aware there will be capital gains to pay less the cost of improvements. Do HMRC insist on receipts for all improvements? Also are they also liable for extra income tax? TIA
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Out of interest, why would there be additional income tax if it wasn't used as a business?
Re receipts: I just completed a tax return for an old couple who have sold a commercial property purchased in the 80s where all the paperwork was lost in a flood. I put a low estimate of the capital expenditure in the white space and detailed what work was carried out.