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The level of farm activity required to achieve entrepreneurs’ relief.
My client has owned a joint share in some land for many years. At various times it has been rented to several farmers but my client or his co-owners have never used it in any kind of business. An agency that specialises in obtaining planning permission for housing development has now approached the client. It has suggested that he can significantly reduce his capital gains tax exposure on the disposal of the land by forming a farming partnership.
I can see that this might be possible but I wonder what the minimum level of activity is required to achieve the desired entrepreneurs’ relief entitlement. My client is over 70 and lives some distance away from the land. He is certainly not going to want to get his hands dirty.
Is it true that entrepreneurs’ relief will apply to the whole of the gain if the land is used...
