Practical guidance for our rural and farming clients #35
In this week’s Rural Update we take a look at:
- When to report a property sale to HMRC
- Buy-to-let property ownership and Income Tax
- Farm diversification projects – key tax and financial points to consider
- Are you prepared if renewable opportunities come your way?
If you have any questions about any of the topics we discuss in this update or relating to your own business please do get in touch with your Old Mill adviser in the first instance, or alternatively click here…
5th May 2021
Andrew Vickery See profile
HMRC introduced radical changes, which came into effect on 6 April 2020, to the disposals of UK residential properties. Individuals (including trustees and personal representatives), now have 30 days to report and make a payment on account of any Capital Gains Tax (CGT) due to HMRC.
This is a huge change considering the disposal would have previously been declared solely on the tax return which could have been up to 22 months after the date of completion.
If you’re considering or in the process of selling a property continue reading here.
The joint ownership of properties for Income Tax purposes has a number of different treatments depending on whether the properties are owned jointly by spouses, or civil partners, or whether they are held jointly between family members.
The other important point to fully understand when you own the property is the legal consequences of holding the property as Joint Tenants, or as Tenants in Common.
If you’re unsure of property ownership and tax treatment continue reading here.
Farm diversifications are a great idea for anyone looking to make use of assets, shore up the farming business or provide economic security, but the financial side is complex. From the start of any diversification project, finances need thorough planning to get budgeting and cash flow right. The short- and long-term reasons for diversifying will affect choice of business structure, and therefore tax obligations, so it’s important to set it up right from the start – a complex field to navigate.
We have put together a diversification guide that will take you through the key points to consider when starting or running a new enterprise. Continue reading here.
With the Government looking to produce greener energy, there will no doubt be opportunities for farmers and landowners to diversify into renewable energy production in the future.
Whether this will be small on-farm renewables to support existing businesses or large-scale sites is yet to be determined, however one area we have seen significant renewed interest is in large-scale solar.
Many of our landowning clients are being contacted by developers to pursue option agreements. Specialist advice should always be sought before signing any agreement to ensure the landowner is protected.
If you find yourself in this position read this article and join us on 27 May for our joint webinar with independent power and energy consultancy, Roadnight Taylor.