Property Disposal - CGT

Sale of a single property from small portfolio

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Client sold 1 of a 7 property portfolio, so can he claim Enterpreneurs' Relief ? Simple gain is £45k and isn't reinvesting

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By Accountant A
24th Mar 2017 18:34

Have a look here:

https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-se...

You didn't say what kind of property or what purpose he has held it for.

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Replying to Accountant A:
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By Yorkshire Blue
24th Mar 2017 19:25

My bad... residential and held for 21 years

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Replying to Yorkshire Blue:
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By Accountant A
24th Mar 2017 20:32

Yorkshire Blue wrote:

My bad... residential and held for 21 years

I missed the point that michaelblake makes that other things being equal (which they aren't) it's not really a part disposal of a business.

Residential property gains were explicitly carved out of the general reduction in CGT rates so 18%/28% will apply.

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By michaelblake
24th Mar 2017 18:42

If the properties are let residential or commercial properties the answer is no. At is simplest and for a sole trader entrepreneurs relief applies to the disposal of the whole or part of a business. TCGA 1992 s169S defines a business as a trade carried on commercially and with a view to realisation of profit. Letting commercial r residential property although it may be a business is not a trade -see the 1982 case of Griffiths v Jackson 56 TC 583

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