A redundant agricultural barn has been sold with a small parcel of land, part of a working farm. Prior to the sale the local planning office had granted prior approval for a change of use to a dwelling house on the barn, although as it stands it would be impossible to convert. I have looked at TCGA Sch 1B re what constitutes a residential sale. The sale agreement does not include any clause ref a contract for a house to be constructed. Initially I thought Para 3 (1)(c) brought this into residential charge but after reading it again (and again) I now think my clients are merely selling land with a barn on it and therefore this is not classed as residential. If I am correct there is no need to report under the new Residential property regime or suffer the higher CGT rates. Has anyone dealt with a similar situation please or can offer advice?
16th Feb 2021
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Help with TCGA1992 Sch 1B Para 3 ref a barn sale
Has a residential sale taken place?