Farmer client with additional trade & vat registered purchased a plot of standing timber for the first time recently & has now agreed to sell on to a sawmill. He had nothing to do with the planting or management of the plantation.The sawmill have advised him to charge vat @ 23 %. I understand the sawmill will arrange the actual tree felling ( would it make any difference if my client arranged same ? ). He hopes to complete similar deals in the future. Can the profit from this deal qualify as tax exempt ?. Could Revenue argue that it is a CGT event ?. Kind Regards, Frank Hanley.
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