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Whether gifts to family of farmland property qualify for holdover relief.
We act for a number of farm partnerships where there has been some diversification into converted properties and let buildings in a small business park. Farming however remains the primary use.
Our clients wish to consider succession but we have impressed on them that gifts of farmland to younger family members who are already partners would qualify for holdover relief for capital gains tax purposes; but gifts of interest in the let property is not so straightforward. Is this correct advice or is there some possibility that holdover relief could apply on a joint transfer of farmland and let property to younger partners? This comment is made in light of cases such as Ramsey v HMRC and/or Farmer v CIR.
Query 18 913 – Radical.
Reply by ANA
Holdover relief under TCGA 1992 s 165 is available on the gift of an asset from one UK resident...
