I have a client who has been running a bed & breakfast in her home for 50 years, she is looking to either sell her home and stop trading or stop trading and release some equity from the home. The home has been her PPR for the whole duration, but i am not sure which is the best way to go about it for her.
She is 73 years old, her property has been valued at £250,000, the equity release team advised they would give her 40% of the value, but then added £7,000 as she takes heart tablets!!!!
My concern is looking at the most tax efficient way of doing things
option 1 - sell up and buy a smaller place - part of which will be liable to capital gains tax as part has been let out
option 2 - equity release - but not sure of the capital gains implications (if any)
She inherited the home from her mother.
Any advice would be greatly appreciated