Landowners entering a promotion agreement to sell land with planning permission
Background: We were approached by a land agent who was acting for the landowners, as we had previously informed him of tax issues arising with land pooling arrangements. The initial proposal was for an equalisation agreement to be put in place to split the proceeds amongst the landowners according to the proportion of land being put into the scheme by each of them.
How we helped: The proposal for an equalisation agreement is ineffective and results in double taxation. We provided advice on an alternative structure ensuring tax was only paid once. We were able to give the technical and complex advice in a way that all landowners could understand, offering one to one meetings to help guide them through the process. The planning put in place helped to save £2.8m in Capital Gains Tax across all landowners.