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Posted Tue, 19 Dec 2023 15:08:04 GMT by
I have created a Capital Gains account to report a gain using the Real Time Transaction process. However I am struggling to know which boxes to tick as I work through it as nothing quite fits the gain. The gain arises from the following - We own some agricultural land, a neighbouring developer wanted to run some infrastructure under our land to enable their development. This would be achieved by providing them with an 'Easement' that allowed them to install infrastructure but didn't involve the sale of any land. Prior to the neighbour getting Planning Permission, we entered into an agreement that gave them an Option for an Easement in return for a payment of £10k. As we had no other gains that year our CG allowance covered that. In the following tax year the Option was exercised and the Easement granted in return for a further payment of £60k which results in a gain that requires reporting and Capital Gains paid. At the outset advice was taken from both an Accountant & Land Agent who confirmed the wording of the agreement & Easement meant that this would be a Capital Gain. It was also suggested that reporting the gain could be done straightforwardly through the real time online process. Now that I am trying to report the gain there seems to be no route through the online process that is applicable. If I treat this a Property or Land I am expected to provide the details of the land sold, when it was purchased etc, this isn't relevant in this case so have to abandon that route. Choosing to report as an 'Other' type of asset soon has me being required to provide details of when/how I became an owner of the asset which again isn't relevant as there is no tangible asset that has previously been acquired. Can anyone suggest how I navigate the Real Time reporting process in these circumstances, when there is no purchase/acquisition related to the payment that is generating the gain? What 'type' of asset should this be reported as?
Posted Fri, 22 Dec 2023 15:00:36 GMT by HMRC Admin 25 Response
Hi Rooster,
You will report using the real time :
 Report and pay your Capital Gains Tax
This will be under other property, assets and gains. as you already held the land, your cost price is £0 and your start date would be when you actually bought the land (or inherited it).
If the land is jointly owned, each person must report their own share.
Thank you. 

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