Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Awkward orchard

05 October 2006
Issue: 4078 / Categories: Forum & Feedback

Farmer Brown has operated for many years as a sole trader from leased land and buildings. He then decided to buy an orchard, but when doing so the solicitor registered the orchard in the names of both the farmer and the farmer's wife. Farmer Brown failed to notice this at the time.
On the purchase, Farmer Brown must have had in mind the possibility of obtaining residential building consent on the orchard, because he freely entered into a contractual agreement with the seller for a 'bonus' payment if this occurred within a certain period of time.

Farmer Brown has operated for many years as a sole trader from leased land and buildings. He then decided to buy an orchard but when doing so the solicitor registered the orchard in the names of both the farmer and the farmer's wife. Farmer Brown failed to notice this at the time.
On the purchase Farmer Brown must have had in mind the possibility of obtaining residential building consent on the orchard because he freely entered into a contractual agreement with the seller for a 'bonus' payment if this occurred within a certain period of time.
During the period of ownership Farmer Brown tried to reap a crop from the orchard. He succeeded on one occasion and the sale proceeds were put through his sole trading operation. Subsequent years were a problem due to frosts and infestation. A few years after purchase residential planning consent...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon