Is BATR available after two years non trading?

Is BATR available after two years non trading?

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The client had traded for four years prior to the transfer of the membership and trading income to the new "club". There has been a two year delay in formalising the terms of the sale and during that time he has been receiving £21,000 per annum in rent from the "club". Firstly does this mean he loses the BATR on the sale proceeds now agreed at £550,000 on the basis that the assets stopped being trading assets when he became a landlord.
Secondly or alternatively, he has agreed to accept payments of the agreed price over ten years can he structure the sale to counter the above or the need to declare CGT at all?
Any ideas would be appreciated.

sean

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By AnonymousUser
23rd Nov 2006 16:02

I don't think the date matters
What has been sold? A business as a going concern? If so, regardless of the tax-point, ie the date on which the deal became unconditional, your client continued to own, until unconditionally transferred, the chargeable assets being used for the purposes of a trade and so full BATR should be available.

Although it is academic, instalments wouldn't really help. CGT becomes payable on the date of the sale, regardless of timing of payment. The one thing that can be done is to arrange payment of the tax in instalments in such cases.

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