Meg Saksida outlines a potential deferral opportunity for capital gains tax purposes.
Land is an asset that, unlike (say) an antique bureau or a painting, can be sold off in several tranches. Land is, therefore, a perfect asset for those times when a landowner is down on their luck and needs a little cash injection but doesn’t want to sell the whole of their asset.
Part-disposals of land
However, a double-edged sword that arises when a taxpayer considers selling only part of the land.
In these years of inflation, it is likely that the land will be sold at a price higher than the cost of the land, and if the landowner is a qualifying person for the purposes of capital gains tax because land is a qualifying asset, the disposal may attract a capital gain. If an individual’s