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Capital Gains Tax-Sale of Land and Stables

Is the sale of non residential equestrian smallholding liable to the 18% tax band or 10%?

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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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By SteveHa
08th Oct 2019 13:51

18%/28% only applies to residential.

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By AndyJR81
08th Oct 2019 14:31

Out of interest, why would there be additional income tax if it wasn't used as a business?

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Replying to AndyJR81:
By Amethyst
08th Oct 2019 14:37

The agent that is handling the sale raised the question but it has only ever been used for private use so I'm guessing there is only additional tax to pay if used as a business.

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By Matrix
08th Oct 2019 14:36

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.

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