Tax

The CLA Tax Department considers and advises on all aspects of national and european taxation that affect owners of land, property and rural business in England and Wales.  The taxes primarily dealt with by the department are:

  • capital gains tax
  • inheritance tax
  • income tax (including PAYE issues)
  • stamp duty land tax;
  • value added tax.

The CLA Tax Department develops tax policy initiatives of benefit to the CLA membership.  In addition, the department considers proposals by the UK Government, Welsh Assembly and the EU Commission for changes to tax law that may impact on members and will make representations on your behalf. 

Local taxes such as business rates and council tax are dealt with by the Chief Surveyor and the CLA’s Regional Surveyors.

Capital Gains Tax (CGT)

This taxes gains arising on the disposal of assets (which may be made by way of sale or gift). There are exemptions (eg, for main residences) as well as for certain disposals involving businesses and business assets, including shares in family companies (entrepreneurs’ relief) as well as reliefs that defer the tax on gifts (hold-over reliefs) or where proceeds are reinvested (roll-over reliefs).

Income Tax

This taxes all forms of income.  The CLA’s primary concern is how it taxes income from land (eg, property income) or income derived from activities conducted on the land (eg, farming) and the boundary between the two.

Inheritance Tax (IHT)

This taxes estates on death and lifetime gifts made within 7 years of death. Certain other gifts – known as gifts made with a reservation of benefit - made after 18th March 1986 are also caught even where made more than 7 years before death. Some very valuable reliefs are available, principally for agricultural and business property.

VAT

Unlike other taxes many of the concepts of VAT are grounded in European concepts. This makes the application of VAT to land transactions particularly complex as European land concepts can be very different to those used in England & Wales.