Who occupied the land?

Business asset taper relief due on land sale proceeds

The taxpayer inherited land from his grandmother in 1998. He sold it in July 2007. During the period he owned the land it was farmed under conacre arrangements.

He claimed business asset taper relief to reduce the gain on the sale but HMRC refused saying the taxpayer had not occupied the land for the purpose of husbandry; rather it had been let to another farmer (C).

The taxpayer appealed.

The First-tier Tribunal said the taxpayer had occupied the land. The tribunal was ‘strongly influenced by the traditional understanding’ of conacre arrangements that the grantor of the licence remained in occupation. Further C did not occupy the land for part of the year.

On husbandry the taxpayer had undertaken relevant acts. He kept the land to a good standard ensuring it was fertilised when necessary; he also...