Split of property

Split of property

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A client has a property which is a fish & chip shop. Downstairs is the sales area and kithchen, upstairs is bathroom, living room and 2 bedrooms. It is rented out but the tenant does not live there as he has his own house.

When he sells it can he claim business use taper relief on the whole property or does he have to apportion the upstairs as non business use?
Lily Castilho

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By AnonymousUser
06th Mar 2006 20:54

Mixed use
Have a look at CG17958 which suggests that where a business asset is not used at all there need be no apportionment between business and non business use. However my gut feel is that HMRC would argue that the flat was not being used for business and look to an apportionment for taper relief. Difficult to suggest to a tenant but maybe some evidence of limited business use (storage is the obvious one - but probably difficult with a trade like this) might help.

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