Should I declare !?
Discussion
I have recently planted 250 xmas trees.
They are about 30cm in height, but in four years they should be around 5ft and ready to be sold. I have made the following calculation
250 x £25 = £6250. As this is a sizeable income, should i be declaring this? and if so, how. Or should i just stuff all the cash in my matress. I have a main income, this is just a side line.
Any questions / guidance?
They are about 30cm in height, but in four years they should be around 5ft and ready to be sold. I have made the following calculation
250 x £25 = £6250. As this is a sizeable income, should i be declaring this? and if so, how. Or should i just stuff all the cash in my matress. I have a main income, this is just a side line.
Any questions / guidance?
Eric Mc said:
There are special tax rules for moneys derived from woodland.
I don't know the details but it mnight be worth you finding out a bit more about profits from woodlands.
Thank God you're here, Eric, I just nearly started advising on something which is nothing to do with me.....I don't know the details but it mnight be worth you finding out a bit more about profits from woodlands.
My penny's worth:
1) Listen to Eric he knows EVERYTHING about Tax (and aircraft and space and...well lots of things!)
2) Never, ever, Ever, EVER, pick a fight with The Revenue! They are SO powerful it's freightening. A hint of a cash business and they'll be onto you (without you knowing initiall) like a rat up drain pipe. A good friend of mine works for the IR, and my goodness they have so much scope it's untrue!
1) Listen to Eric he knows EVERYTHING about Tax (and aircraft and space and...well lots of things!)
2) Never, ever, Ever, EVER, pick a fight with The Revenue! They are SO powerful it's freightening. A hint of a cash business and they'll be onto you (without you knowing initiall) like a rat up drain pipe. A good friend of mine works for the IR, and my goodness they have so much scope it's untrue!
On the subject of woodlands and taxation - here are the basics:
There is no income tax charge on woodlands
There is no Capital Gains Tax charge on the disposal of trees (felled or standing).
Therefore, the growing and selling of trees is essentially a tax free activity (although, as ever, there are some subtle exceptions).
If the land is owned by the tree seller, there could be a Capital Gains Tax cherge when the land is eventually sold. It is important, at the point of purchase (if bought), to differentiate between that element of the purchase price relative to the trees already on the land and the land itself.
There is no income tax charge on woodlands
There is no Capital Gains Tax charge on the disposal of trees (felled or standing).
Therefore, the growing and selling of trees is essentially a tax free activity (although, as ever, there are some subtle exceptions).
If the land is owned by the tree seller, there could be a Capital Gains Tax cherge when the land is eventually sold. It is important, at the point of purchase (if bought), to differentiate between that element of the purchase price relative to the trees already on the land and the land itself.
Eric Mc said:
On the subject of woodlands and taxation - here are the basics:
There is no income tax charge on woodlands
There is no Capital Gains Tax charge on the disposal of trees (felled or standing).
Therefore, the growing and selling of trees is essentially a tax free activity (although, as ever, there are some subtle exceptions).
If the land is owned by the tree seller, there could be a Capital Gains Tax cherge when the land is eventually sold. It is important, at the point of purchase (if bought), to differentiate between that element of the purchase price relative to the trees already on the land and the land itself.
There is no income tax charge on woodlands
There is no Capital Gains Tax charge on the disposal of trees (felled or standing).
Therefore, the growing and selling of trees is essentially a tax free activity (although, as ever, there are some subtle exceptions).
If the land is owned by the tree seller, there could be a Capital Gains Tax cherge when the land is eventually sold. It is important, at the point of purchase (if bought), to differentiate between that element of the purchase price relative to the trees already on the land and the land itself.
Just seen this thread.
I have a client with a xmas tree business, and it's not covered under woodland, so any profits should be delcared.
Sorry
Edited to add, although if it's on a farm you can use all the other farming criteria, averaging etc, and averaging is available to you too anyway for fluctuating profits.
I have a client with a xmas tree business, and it's not covered under woodland, so any profits should be delcared.
Sorry
Edited to add, although if it's on a farm you can use all the other farming criteria, averaging etc, and averaging is available to you too anyway for fluctuating profits.
Edited by thewave on Thursday 16th August 10:54
Edited by thewave on Thursday 16th August 10:57
Vesuvius 996 said:
Eric Mc said:
On the subject of woodlands and taxation - here are the basics:
There is no income tax charge on woodlands
There is no Capital Gains Tax charge on the disposal of trees (felled or standing).
Therefore, the growing and selling of trees is essentially a tax free activity (although, as ever, there are some subtle exceptions).
If the land is owned by the tree seller, there could be a Capital Gains Tax cherge when the land is eventually sold. It is important, at the point of purchase (if bought), to differentiate between that element of the purchase price relative to the trees already on the land and the land itself.
There is no income tax charge on woodlands
There is no Capital Gains Tax charge on the disposal of trees (felled or standing).
Therefore, the growing and selling of trees is essentially a tax free activity (although, as ever, there are some subtle exceptions).
If the land is owned by the tree seller, there could be a Capital Gains Tax cherge when the land is eventually sold. It is important, at the point of purchase (if bought), to differentiate between that element of the purchase price relative to the trees already on the land and the land itself.
Vesuvius 996 said:
Self assessment form.
You fill a asection in for PAYE, and section for other business.
Surely you will only have to fill it in/declare it after you have received any cash/income.You fill a asection in for PAYE, and section for other business.
Its hardly a business yet if one has to wait five years before one can sell anything.
At the moment you have just planted rather alot of trees.
Edited by Egbert Nobacon on Thursday 16th August 21:39
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