Is now a good time to sell land?
The UK government borrowed a record £127.9 billion between April and June 2020, as tackling the coronavirus pandemic took its toll on public finances.
As lockdown continues to ease, the end of the furlough scheme is in sight and workers return to the office, government spending will slow, but what about the huge debt which will remain?
The chancellor will surely be looking at ways to recoup some of this expenditure. We already know that the end of the BPS is coming, could additional taxation hurt the agricultural industry even further?
In July, Farmers Weekly reported that the chancellor has now asked the Office of Tax Simplification (OTS) to investigate how capital gains are taxed to ensure the system is fit for purpose and fair.
One result might be that any increase in value of farmland might soon be treated as income and therefore taxed.
Whilst we all await government updates in terms of the easing of lockdown, news on a vaccine and a strategy from the government about how the economy will recover, one thing we do know is that the government will be acting to increase its income. Perhaps now, therefore, is the right time to action a land disposal.
If you are currently considering a land sale and want to discuss the matter in confidence please contact Jim Bryant on 01223 842675 or firstname.lastname@example.org
(Source BBC News and Farmers Weekly July 2020).