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Replacement of Business Assets

Replacement of Business Assets


Corporate client sells its land and business.  It is a profitable caravan site.  The company buys and sells caravans and earns commissions on those.   The company also leases the land to owners. 

If the company sold this land and "business" or "trade" and reinvested the proceeds in a new site would s152 be available to it?

Comments appreciated.


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By blok
31st Aug 2010 11:05


Hi Terry,

That is my sticking point.  The age old question of what is a trade as opposed to a business.

Has anyone any recent experience of HMRC opinion on this?

I understand that there was a case in respect of whether a caravan site entity was a business or not for BPR purposes that decided in the taxpayers favour, however I struggle to expand this further into trading. 

I remember my wise lecturer from my studies say that "not all businesses are trades but all trades are businesses".

But, on the other hand, the company buys and sells caravans, infact more than 50% of its income is from the sales of caravans on site.

Would an apportionment of the gain be an acceptable compromise you think?



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By blok
23rd Sep 2010 09:23


What has happened to this thread?

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