Client is about to sell his PPR residence (plus garden) and surrounding 150 acres agricultural land for £2 million. The house and garden (less than half a hectare in total) is valued at around £1 million and so is the agricultural land.
He has let out the agricultural land for grazing purposes since purchase. He is not a farmer. He asked me whether or not the sale should be done under one or two sale contracts (same purchaser). (What is normal contract practice in this area).
There is no CGT on the main residence sale element, so there would have been no requirement to report this alone within the 60 day limit. However, if he sells the main residence and land for £2 million on the same sale contract, does he have to report the sale within 60 days to pay the CGT on the large agricultural land gain on the basis the house has been sold with (total) (albeit agricultural) land in excess of 0.5 hectare.
Does selling each asset using two separate contracts make any difference. Is using two contracts inadvisable for any other reasons.
Is there also any scope for Stamp Duty Land Tax savings for this transaction anywhere.