Selling my garden and pony paddocks?

Selling my garden and pony paddocks?

11:56 AM, 15th February 2022, About 2 years ago 11

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I have two pony paddocks of about 3 acres with our house and garden (1.5 acres). The paddocks have development potential with neighbouring land being already built on, or with recently approved planning.

I am trying to work out what is the most tax-efficient way to exit, the options I see are as follows:

1) Do Nothing – sell and pay capital gains tax on the 3 acres profit of about £1m = tax at 28% of about £280k
2) Sell the fields into our existing trading property development company, then subsequently sell to the big developer effective corporation tax 19% = £190k, then the wealth is still in the company, the company would be eligible for Business Asset Disposal Relief = another £81k
3) The paddocks are on a separate title deed, could I include them in our existing property partnership. The partnership is nearly three years old, and we could incorporate it, thereby transferring the capital gain into a company. The same issue arises of wanting to extract the profit from the company, or maybe it has to be kept in the company and reinvested
4)Any other options?

Thanks for sharing your thoughts.


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15:01 PM, 20th February 2022, About 2 years ago

Noting "using vct and seis relief" don't forget the possibility of investing into full Enterprise Investment Schemes, limits, tax reliefs, and risk profile are all different to SEIS, they can be useful if an IHT shelter is of interest.

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