Our client is a tenant farmer under a farm business tenancy and he has received compensation in respect of the Birmingham North Relief Road. The compensation includes:
Our client is a tenant farmer under a farm business tenancy and he has received compensation in respect of the Birmingham North Relief Road. The compensation includes:
- the loss of tenant's interest in land taken;
- the loss of tenant's improvements; and
- severance and injurious affection to the interest in the retained holding.
The capital gains position regarding compulsory purchase receipts in respect of freehold land is quite clear but I wonder whether there is any scope for exemption under the principles established in the case of Davis v Powell [1977] STC 32. Otherwise we assume that as the tenancy has been in existence since 1998 full business asset taper relief will be due. Readers' views are appreciated.
Query T16 961 — Compo.
Reply by Thicket:
The case of Davis v Powell [1977] STC 36 established that statutory compensation under...
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