Readers’ forum: Capital gains tax on farmland and buildings

My query concerns mainly farmland that has been sold to a developer who will build residential properties on the land.

On this sale what is the rate of capital gains tax and does this need to be reported as a disposal of residential property for capital gains tax purposes?

TCGA 1992 Sch 1B para 3(1)(c) seems clear on the matter as it states that a person ‘disposes of residential property’ if ‘…the interest in land subsists under the contract for the acquisition of land consisting of or including a building that is to be constructed or adapted for use as a dwelling’. However as far as my client is concerned they are selling a bare piece of land.

If the interpretation is correct and the sale would also include the whole farm including the farmhouse does this have any impact on a potential claim to...