Husband and wife client bought cottage in 1997, did small refurb and rented out as FHL (all criteria met) until early 2002. Lay empty until 2008 when extension took place (apparently builders are hard to come by in that part of the country!) Let as FHL thereafter (again all criteria met) until this ceased in March 2016 as put on the market and sold the following month.
Disposal seems to attract ER under s 169I 2b TCGA1992 as disposal of one or more assets in use at the time the business ceased..................business owned by individual throughout the period of 1 year ending with the date on which the business ceases to be carried on. However, on reviewing clients' 2016 tax returns (they completed themselves) there is a private use adjustment for FHL for 3 weeks. Question is, does the private use affect the ER claim?
Thanks in advance!
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No. There are no apportionment provisions that restrict relief where there is non business use of an asset and relief is due following Section 169I(2) in contrast with relief under Section 169K where S169P(4)(a) would introduce restrictions for non business during the period of ownership.