Business Asset Taper on FHL

Business Asset Taper on FHL

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Thank you for the various answers to my question on the split of profits on furnished holiday letting, when only one of the owners actually manages the trade. If, consequently, income continues to be declared only by the "trading" spouse, does this in future jeopardise Business Asset Taper Relief on the share of the property owned by the "non trading" spouse, who has received no income from the furnished holdiay let?
Nicola Fothergill

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By CrowtherP
16th Sep 2004 15:15

section 241 gives you
Section 241 TCGA gives you the taper relief for the "trade / business" but the taper relief Schedule A1 TCGA talks of the trade "carried on by that individual". If you split the income 50-50, then each of the two spouses would receive taper relief at the business rate. I would have thought the Revenue would agree that, where all the work was done by the one, then those still liable to CGT (the couple, or maybe 4 people where others in the family perhaps co-own the land) would still be entitled to it.

After all section 504 does not really give any qualifying demands, as regards what work you have to do for it to be a qualifying let. It simply has to be let for the min. period of time, annually, and for short periods only of less than a month.

It's a fine line, maybe somebody has tried and failed?

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