A TAX TRAP could await farmers who rush to sell land for development without reading the small print, tax experts have warned.
Soaring property prices and lower farming incomes make the cash reward of selling land all the more attractive, said Martin Johnson of Sunderland accountant Torgersens.
But farmers must read the small print before agreeing a deal.
“Selling land is often a lucrative option for farmers but they must not leave it in the hands of the developer to arrange the tax situation.”
A deal struck without tax consideration could trigger capital gains or corporation taxes, said Mr Johnson.
“Agriculture has taken a battering in recent times and it is important that if farmers make the decision to sell land, they ensure any profit earned isn‘t scooped up by the taxman.”