STEP Journal

Land a tax break

Amanda Edwards, March 2015

Amanda Edwards TEP is an Associate in the Private Client and Tax Department at Boodle Hatfield LLP

Summary:

Amanda Edwards explains when a capital gains tax exemption is available for a small part disposal of land

Even a wealthy client may make a disposal of a small plot of land from a larger area. If the gross proceeds do not exceed GBP20,000, there is a useful treatment for capital gains tax (CGT) purposes under s242 Taxation of Chargeable Gains Act 1992 (TCGA 1992), whereby such a transfer is not treated as a disposal. The two main conditions required under s242 are:

If you are a member, please login to read the full article. If you are not a member, you can find out more about joining STEP here. Non-members can subscribe to the STEP Journal and Trust Quarterly Review (TQR) - see subscribing details.