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Readers’ forum: Capital gains tax on part disposal of farmland

03 May 2022
Issue: 4838 / Categories: Forum & Feedback
Farmland

My client is a farming partnership. The partnership and the farmhouse farmland and farm buildings are owned equally by two brothers A and B who farm the land. Brother A is the only one who actually lives in the farmhouse with his nonfarming sister in joint occupation.

Brother B does not live in the farmhouse and has his own separate private residence which he built from a converted barn elsewhere on the farmland.

It is now proposed to dispose of part of the garden of the existing longstanding farmhouse to the adult daughter of Brother B. In my opinion this will qualify for a disposal of part of the garden in circumstances as mentioned in HMRC’s Capital Gains Manual CG64832 the part owner Brother A being prepared to tolerate some curtailment of the reasonable enjoyment of his own residence.

However concerning the half...

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