Selling a B & B

Selling a B & B

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Is there any important relevance/significance in ceasing booking six months prior to a sale of the business (as has been advised) in order to avoid CGT?

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By User deleted
07th Oct 2011 16:06

Perhaps

The advice is probably based on the assumption that the property has always been used as a B&B, and never wholly as main residence. By stopping bookings in advance of a sale you are bringing the whole property within the scope of PPR relief - and I guess 6 months is seen as a non-aggressive length of time. Whether or not the strategy would eliminate CGT can only depend on the circumstances - length of ownership, size of gain etc.

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