• Contact us
  • About us
  • Digital edition
  • Online archive
Monday, June 23, 2025
Cumberland and Westmorland Herald
  • News
    Is outsourcing a strategic opportunity amid rising employment costs?

    Is outsourcing a strategic opportunity amid rising employment costs?

    Farms focus on cashflow following SFI scheme closure

    Farms focus on cashflow following SFI scheme closure

    MP asks for Government help over plans to replace M6 bridges

    MP asks for Government help over plans to replace M6 bridges

    Resurfacing work to start in Shap – road to be closed for 21 days

    Resurfacing work to start in Shap – road to be closed for 21 days

    Arrests after drugs raid in Penrith

    Arrests after drugs raid in Penrith

    New Kirkby Stephen shop blends retail with purpose

    New Kirkby Stephen shop blends retail with purpose

    New vicar appointed for churches

    New vicar appointed for churches

    Award for Eden writer

    Award for Eden writer

    Penrith man admits possessing cannabis twice with intent to supply

    Penrith man admits possessing cannabis twice with intent to supply

  • Sport
    Medal success for Upper Eden tug-of-war team

    Medal success for Upper Eden tug-of-war team

    Eden man competes in Hyrox World Games

    Eden man competes in Hyrox World Games

    Double national triumph for Stuart Robinson

    Double national triumph for Stuart Robinson

    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
  • News
    Is outsourcing a strategic opportunity amid rising employment costs?

    Is outsourcing a strategic opportunity amid rising employment costs?

    Farms focus on cashflow following SFI scheme closure

    Farms focus on cashflow following SFI scheme closure

    MP asks for Government help over plans to replace M6 bridges

    MP asks for Government help over plans to replace M6 bridges

    Resurfacing work to start in Shap – road to be closed for 21 days

    Resurfacing work to start in Shap – road to be closed for 21 days

    Arrests after drugs raid in Penrith

    Arrests after drugs raid in Penrith

    New Kirkby Stephen shop blends retail with purpose

    New Kirkby Stephen shop blends retail with purpose

    New vicar appointed for churches

    New vicar appointed for churches

    Award for Eden writer

    Award for Eden writer

    Penrith man admits possessing cannabis twice with intent to supply

    Penrith man admits possessing cannabis twice with intent to supply

  • Sport
    Medal success for Upper Eden tug-of-war team

    Medal success for Upper Eden tug-of-war team

    Eden man competes in Hyrox World Games

    Eden man competes in Hyrox World Games

    Double national triumph for Stuart Robinson

    Double national triumph for Stuart Robinson

    Patterdale’s Eden Eagles make history

    Patterdale’s Eden Eagles make history

    Penrith teen crowned British vault champion

    Penrith teen crowned British vault champion

    Penrith gymnasts represent North of England in finals

    Penrith gymnasts represent North of England in finals

    New boss revealed for Penrith AFC

    New boss revealed for Penrith AFC

    Penrith Panthers celebrate winning season

    Penrith Panthers celebrate winning season

    Darren Edmondson leaves Penrith AFC

    Darren Edmondson leaves Penrith AFC

  • Obituaries
  • Nostalgia
  • Online archive
  • Buy Photos
  • Buy your paper
  • North Lakes Living
No Result
View All Result
Cumberland and Westmorland Herald
No Result
View All Result
Home Expert advice
This article appears as part of a paid partnership with Armstrong Watson

Compulsory purchase of land and Capital Gains Tax

By Keith Johnston, agricultural senior tax manager, Armstrong Watson

by CWH
5 July 2023
in Expert advice, Farm and Countryside
A A
Share on FacebookShare on Twitter
Keith Johnston

The loss of land under a Compulsory Purchase Order (CPO) for a new road scheme can be extremely stressful due to not knowing when or how much land is going to be taken.

Highways England’s project to upgrade 18 miles of the A66 to a dual carriageway is moving forward, with the project’s Development Consent Order examination period ending in May, and the examining authority expected to make its recommendations to the Secretary of State in August.

For farmers and landowners affected by such projects, there are many things to consider, including Capital Gains Tax (CGT), and legal or valuation issues.

When it comes to legal or valuation issues, separate specialist advice needs to be taken. However, one important point to note is that payment may be awarded for a reduction in the value of the property you have retained, as well as for land sold.

Capital Gains Tax issues around CPOs

Ordinarily, the sale of land is voluntary, and the tax consequences are known before the transaction is entered into.

However, with land sold under a CPO, a sale is involuntary, and so would be subject to tax on the proceeds received.

However, the tax system recognises this issue and affords some relief in the form of ‘Rollover Relief’, which is similar, but crucially different, to that available to all trading businesses. Rollover Relief allows CGT to be deferred by reinvesting the proceeds into qualifying assets.

Normally Rollover Relief is only available for “qualifying assets” used in a trading business, and where both the asset sold and purchased are on the list of “qualifying assets”. In a farming context, these are land, buildings, and fixed plant and machinery. The deadline for reinvesting the proceeds is three years after the date of disposal.

However, the rollover relief rules are different when land is sold under a CPO to a body holding CPO powers. The key differences are:

  • Proceeds must be reinvested in “new land”. This means that improvements to existing land or buildings do not qualify.
  • The date of disposal is when the amount of compensation is agreed not when the asset is sold.
  • The new asset does not have to be used for business purposes.
  • A dwelling house can qualify for relief but not if it becomes the vendors main residence at any time during the next six years.
  • The landowner must not have taken any steps to dispose of the land or made their willingness to sell known to the authority with CPO powers.

It is important to note that when the new asset is sold, the rolled over CGT will need to be paid unless the gain can be rolled over into further new assets.

This is an extremely complicated area of tax and specialist advice needs to be taken at an early stage to ensure you get the correct treatment and don’t suffer tax unnecessarily.

If you would like more information regarding Capital Gains Tax issues on land sold under a CPO please get in touch on 0808 1445575 or email help@armstrongwatson.co.uk

Related Posts

Is outsourcing a strategic opportunity amid rising employment costs?
Expert advice

Is outsourcing a strategic opportunity amid rising employment costs?

22 June 2025
Farms focus on cashflow following SFI scheme closure
Expert advice

Farms focus on cashflow following SFI scheme closure

21 June 2025
Risks and strategies for flexible pension drawdown
Expert advice

Risks and strategies for flexible pension drawdown

15 June 2025
Carbon audit produces positive results for North Sheep host family
Farm and Countryside

Carbon audit produces positive results for North Sheep host family

13 June 2025
How can businesses combat increased pressure on cashflow and profitability?
Expert advice

How can businesses combat increased pressure on cashflow and profitability?

8 June 2025
Farmers flock to North Sheep
Farm and Countryside

Farmers flock to North Sheep

6 June 2025
No Result
View All Result

Stay connected

Facebook Twitter Instagram

Most popular

New Kirkby Stephen shop blends retail with purpose

New Kirkby Stephen shop blends retail with purpose

20 June 2025
Resurfacing work to start in Shap – road to be closed for 21 days

Resurfacing work to start in Shap – road to be closed for 21 days

20 June 2025
New vicar appointed for churches

New vicar appointed for churches

20 June 2025
Looking back through the archives

Looking back through the archives

20 June 2025
Eden man competes in Hyrox World Games

Eden man competes in Hyrox World Games

20 June 2025
Penrith man admits possessing cannabis twice with intent to supply

Penrith man admits possessing cannabis twice with intent to supply

20 June 2025
Cumberland and Westmorland Herald Logo

33 Middlegate
Penrith
Cumbria
CA11 7SY

Phone: 01768 862313
Email: news@cwherald.com

Registered in England as Barrnon Media Limited. No: 12475190
VAT registration number: 343486488

Explore

  • News
  • Sport
  • Farming
  • Property
  • Obituaries
  • Nostalgia
  • Your view

Useful links

  • Contact us
  • Photosales
  • Online archive
  • Buy your paper
  • Digital edition
  • North Lakes Living
  • Advertise
  • About us

Follow us on

© Barrnon Media Limited 2025

Terms & Conditions / Privacy Policy / Cookie Policy

This website and its associated newspaper are members of the Independent Press Standards Organisation
Review Your Cart
0
Discount
Add Coupon Code
Subtotal
Total Installment Payments
Bundle Discount
Checkout

 
0
No Result
View All Result
  • Home
  • News
  • Sport
  • Obituaries
  • Nostalgia
  • Online archive
  • more
    • North Lakes Living
    • Buy Photos
    • Buy your paper
    • About us
    • Contact us

© 2020 Cumberland & Westmorland Herald