A client has been trading as an estate agent out of a commercial property for some 50 years.
The property, prior to his purchase, was a residential property for 70 years. When he purchased it in 1970 as a residential property, he obtained change of use to commercial.
He is now retiring and closing the business.
He can obtain a much higher sale price for the property selling it as residential rather than as commercial as it is currently registered. Assume the property will be sold within 6 months of his retirement date.
The property, although now registered as commercial, is basically still a house so he would not be doing any work to the property before selling it, simply just obtaining change of use which he believes will not be a problem to obtain.
He is currently trading as a partnership with his wife, owns the property in his sole name and has never charged a rent to the partnership.
He traded as a sole trader for most of the 50 years but became a partnership around 10 years ago.
Can he still claim Business Asset Disposal Relief and pay just 10% CGT as the disposal is related to his retirement even if he gets change of use and sells it as residential?
Thank you in advance for any advice.