I am looking to check something with those members experienced in capital gains tax & business rollover relief.
A farmer operating as a sole trader generates income from a mixture of sale of grain, straw and hay along with grazing fees for other livestock farmers who use the fields for grazing their sheep & cattle. Some years the farmer keeps his own livestock, some years he does not.
The farm yard has a mixture of buildings, some used for farm storage and livestock, and some units are leased to other businesses by the farm business.
The Farmer has been approached to sell a field (which is used for grazing) by residents of a neighbouring house.
If he goes ahead with the sale, he intends to invest the proceeds in building a new farm workshop with an additional unit that could be let out, providing an income to the farm. This would replace an existing building that is in a poor state of repair.
The field should qualify as business property for the farm, but is there any reason that the investment in the construction of a new building would not be a Qualifying Business Asset for the purposes of business rollover relief? There is just something niggling in my head because the investment would be in the form of payments to subcontractors, material purchases etc for the construction, rather than a one off purchase of an already complete Asset.