selling land to buy land

tommylimerick

hi folks
i was thinking of selling land three different lots about 55 acres to buy a bigger place a bit bigger altogether maybe about 100 acres
the 55 acres is not in my name but in my mums name
what would the costs be or the easiest way to buy this new place and put it in my name ?
i am just over 35 and have the green cert and farming full time with active herd number
my mum is on the pension

Tipp Man

tommylimerick wrote: »

hi folks
i was thinking of selling land three different lots about 55 acres to buy a bigger place a bit bigger altogether maybe about 100 acres
the 55 acres is not in my name but in my mums name
what would the costs be or the easiest way to buy this new place and put it in my name ?
i am just over 35 and have the green cert and farming full time with active herd number
my mum is on the pension

Capital gains on current place

Stamp on the new place

No roll over which makes you kind of transaction very expensive - get professional advice if you are serious about it

tommylimerick

what do you eman by no roll over what is that?
i read something about stamp duty relief for farm consolidation but not sure if that is still in place ?
would you still have to pay capital gains tax even when you were spending more on the purchased farm than you got from the sold land ?

Tipp Man

tommylimerick wrote: »

would you still have to pay capital gains tax even when you were spending more on the purchased farm than you got from the sold land ?

That's the rollover i'm talking about - if you bought land from the sale of land then the capital gains was rolled over to the new land

That however is no longer available - and its an absolute disgrace

KCTK

It would be possible to avoid CGT on the sale of the "old" farm with the purchase of the "new" farm but not through roll over relief as per Tipp Man's post. It would require a little more advanced tax planning and first step would be the transfer of the "old" farm in to your name. If you find yourself a good tax advisor (or an accountant who actually knows tax..) then he/she should be able to set out all the steps required to you.
Only thing is that it will be all grand in theory but for tax reasons the steps required will have to take place in a certain order which may not be possible when dealing with selling one farm and buying another.

Stamp duty could be an issue in your case as no longer a "young trained farmer" so no stamp duty relief on transfer from mother but due to lower rates from 2012 and consanguinity relief you will only suffer it at 1%.

Think the farm consiladation relief stopped in June 2011 so you'd be hit by 2% stamp duty on new farm.

GO GET GOOD TAX ADVICE before you do anything now

kermit_the_dog

Tipp Man wrote: »

That's the rollover i'm talking about - if you bought land from the sale of land then the capital gains was rolled over to the new land

That however is no longer available - and its an absolute disgrace

roll over relief was removed in 2002