Hundred-acre farm

We act for a farming partnership which sold its dairy herd and various farm buildings approximately seven years ago.

The partnership retained the farmhouse and 120 acres of land and currently this is all used for cattle grazing and silage. The partnership receives the single farm payments and the partners look after the land themselves (for example carrying out hedge-cutting fencing etc.) and make profits of about £10 000 per year.

The partners have decided that they now wish to cease the partnership and sell the farmhouse and 100 acres of land. The farmhouse has been lived in by one partner until he vacated the property six months ago.

Our queries are as follows.

• If the farmland is sold either at the same time as or before the farmhouse would both assets qualify...