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Our clients, a dairy farming partnership, purchased a residential property in a village near to the farm in 2002. This has been occupied 'rent free' by their employed herdsman since then.
Due to the employee leaving, the partners now wish to sell the property, which is worth £60,000 more than they paid for it.
The legislation appears unclear when the house is not within the farm boundary and therefore a number of problems have been identified.
Our clients a dairy farming partnership purchased a residential property in a village near to the farm in 2002. This has been occupied 'rent free' by their employed herdsman since then.
Due to the employee leaving the partners now wish to sell the property which is worth £60 000 more than they paid for it.
The legislation appears unclear when the house is not within the farm boundary and therefore a number of problems have been identified.
- Is business asset taper relief due on the sale?
- Should a benefit in kind have been declared for the employee?
- Was agricultural buildings allowance claimable?
- Would the house if retained obtain any agricultural property relief assuming that it remained occupied by a farm employee?
Readers' views are invited.
Query T16 937 – House.
Reply by JCS:
If a property is occupied...
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