Farmers could get caught in a nasty tax trap if they agree deals with property developers before reading the small print, warns our Sunderland tax experts.
Soaring property values and lower farming incomes combined with a lack of housing means farmers are being offered fortunes for a slice of their land across the county.
Martin Johnson, tax partner at our Sunderland office, urges farmers to look out for potential tax sting or seek professional tax advice before considering a deal:
“Selling land is often a lucrative option for farmers but they must not leave it in the hands of the developer to arrange the tax situation. A deal that has been struck without consideration of tax implications could trigger capital gains tax or corporation tax. Agriculture has taken a battering in recent times and it is important that if farmers take the decision to sell land, they make sure any profits they have earned can’t be scooped by the taxman,” he adds.
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