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Car Park Business qualifying asset

Client is looking to purchase freehold land which run as a permanent car park business. Would this be as a qualifying asset for CGT Rollover purposes

 

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08th Apr 2019 12:57

What's your view, as a matter of interest?

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08th Apr 2019 13:12

I don't see why it wouldn't qualify - Section 155 of TCGA 1992 - Class 1, Head A(2)

As I think the previous poster is perhaps suggesting, are you aware of any particular factor that makes you doubt?

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to Wilson Philips
08th Apr 2019 13:46

The wording of the question makes me doubt.

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to Tax Dragon
08th Apr 2019 14:06

In what respect?

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to Wilson Philips
08th Apr 2019 14:53

Because "freehold land which run as a permanent car park business" is not English which spoke by I.

Experience with Aweb threads suggests that meaning is often added in translation. I can add meaning to reach the answer you have reached. My doubt is that that is the correct translation.

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to Tax Dragon
08th Apr 2019 14:59

Fair enough. The obvious inference from the question is that the questioner is referring to the purchase of land to be used for the purposes of a car park business. But I accept that a precise translation into 'correct' English might result in a different interpretation.

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to Wilson Philips
08th Apr 2019 15:10

I find myself thinking that NCP probably doesn't use O J Accountants.

Also that anyone with such a business, or providing tax advisory services to such a business, would likely not need to ask the question, as you have interpreted it, on Aweb.

But that could just be me.

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to Wilson Philips
08th Apr 2019 16:57

Your interpretation is the correct one .Coming from Australia my English may not be “ correct”.The Client is acquiring the land to use in his new car parking business

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to Cerchart
08th Apr 2019 22:38

New? So is your issue then not one of whether the asset is within s155 (the question Wilson thought you were asking), but whether the basic conditions in s152 are met?

It would save time if you asked the question you meant to ask. Mind you, if you were asking about s152 rather than s155, you'll need to provide more info - or answer the opening reply above. At least, that's if you want informed responses. We could just guess, but what use is that to you?

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to Tax Dragon
09th Apr 2019 10:42

Perhaps Wilson assumed that s 152(8) was in point and applied, hence dealing with the s 155 issue?

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to Vile Nortin Naipaan
09th Apr 2019 10:59

Not really, although of course it may be relevant. The question was not "Is rollover relief available?" but "Is the asset a qualifying asset for rollover relief?"

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to Wilson Philips
09th Apr 2019 11:08

Wilson Philips wrote:

The question was... "is the asset a qualifying asset for rollover relief?"

Fair point.

What a weird question!

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to Vile Nortin Naipaan
09th Apr 2019 11:06

Wilson can make whatever assumptions Wilson can make. I have no problem with that. But, whether or not s152(8) applies, some assumptions (not necessarily at odds with yours about Wilson's) could create an issue with the "taken into use" requirement in ss1.

My own issue is with the need for any of us to be making assumptions. Does the OP not know the facts?

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to Tax Dragon
09th Apr 2019 11:19

Fair dinkum mate! I think the OP's maybe a blodger, and we're not all here to fuch spiders.

https://www.businessinsider.com.au/how-australians-talk-2017-7

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08th Apr 2019 15:48

My suspicion would be that "client" is going to be the new landlord over some land that the tenant operates as a car park. Call me cynical.

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to Vile Nortin Naipaan
08th Apr 2019 15:51

I don't think that is cynical in the slightest. It seems to me to be a perfectly reasonable alternative interpretation.

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