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Farming & Rural Business Community

Development land tax pitfalls – deferred consideration

Author: Julie Butler FCA, Founding Director, Butler & Co

Published: 27 Oct 2023

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Despite all the news about the housing sector slowing down, the demand for farmland for development has remained strong, with reduced profit margins due to costs. Tax on the sale of land for development can be very complicated. In most cases the gain on the sale of land should be chargeable to capital gains tax (CGT) but in some cases the profit can be charged to income tax and this takes considerable planning in advance.

The importance of the legal contract

Being caught for income tax

Conditional on planning permission

VAT and Inheritance Tax