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Readers' forum : Conacre conundrum

24 May 2016
Issue: 4551 / Categories: Forum & Feedback

Can the sale of a conacre letting ever be eligible for rollover relief?

My question concerns the situation where farmland has been let continuously on a conacre basis from acquisition until disposal. In such a case it seems to me that business asset rollover relief under TCGA 1992 s 152 cannot be claimed. This is because the letting does not constitute a trade. This will be so even if the proceeds of the sale are re-invested in a qualifying asset within the prescribed time limits.

The McClean ([2009] STC 990) and Evelyn (TC00997) cases make clear that in most instances conacre lettings in Northern Ireland do not constitute a trade. I appreciate that there is an exception if the proceeds concerned relate to a compulsory purchase order. However leaving that aside surely there is no extension of the relief (as in the case of holdover relief) to straightforward conacre arrangements where the farmland is owned by the landowner for more than...

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