Capital gains tax on land sale?

[elise2000]

Hi all

I inherited a field from my grandparents around 15 years ago. It’s been rented out for next to nothing, so I’m considering selling it.

What would the tax implications be? Cgt on full sale price? Or on uplift in value over the last 15 years?

Many thanks

[Panamax]

Obviously the latter.

Depending on the size of the estate and how it was handled there should somewhere be a record of the field's value at the time you inherited it. On the other hand, if the field wasn't worth very much back then it might be easier to simply declare the whole sale proceeds as "gain" and pay an extra 2p of tax.

Even if "agricultural property relief" was claimed on the field there will be a record somewhere. It's easy to start a search here,
https://www.gov.uk/search-will-probate

[alscar]

CGT will be payable on the difference between sale price today and cost price using the value from 15 years ago.
I think you can get some allowance for legal fees and the like but not maintenance costs.
And obviously also a pretty small CGT allowance currently to play with.
Equally should you have any any existing CGT losses you could offset those against the profit.

[elise2000]

Thanks both. Latter makes sense, but just wasn’t sure as obviously it didn’t cost me anything originally.

I’ll see if the value was mentioned in all the paperwork.

Thanks

[Eric Mc]

What type of land is it i.e. what was it used for?

Might be worth a read -

https://agland.co.uk/is-agricultural-land-exempt-f...

[elise2000]

Eric Mc said:

What type of land is it i.e. what was it used for?

Might be worth a read -

https://agland.co.uk/is-agricultural-land-exempt-f...

Thanks. It’s been in the family for 150 years or so, and rented out to tenant farmers ever since. I believe it’s currently used for cattle

[Eric Mc]

Might be worth consulting a specialist in taxes relating to agricultural land then.

[elise2000]

Eric Mc said:

Might be worth consulting a specialist in taxes relating to agricultural land then.

Thanks