A client operates a business with about 10 staff and has office premises about 300 miles from London.
Due to London customers there is a requirement to be in the City about 2 days a week on average. Several years ago, before they became clients of mine, they purchased a flat in London to be used by staff and the proprietor, when in London on business. HMRC enquired about the expenses being claimed and eventually agreed that the costs of running the flat were a business expense. The flat was occasionally used for business meetings and it was also used as office space when required.
When not used for business, it lies empty.
Due to changing business circumstances the trips to London are becoming less regular and the client is contemplating disposing of the property for a significant gain.
Does the sale of the flat qualify for business asset taper relief?
John
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What's sauce for the goose....
I wouldn't stake my life on the availability of BATR but would certainly make the claim with an insurance "white box" explanation. If HMRC attempt to argue against, hit them with their allowance of costs for income tax purposes. I know, I know , it does not necessarily follow that CGT general treatment must be the same but the flat has been recognised as part office, part staff quarters (analogous to an hotel ) so it has been used for business (assumed trading ) purposes. On this basis , why should a gain on sale not attract BATR ?