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CGT on business portion of property

CGT on business portion of property - two annual exemptions or one?

Hi, wonder if anyone can asssist on this please?

I have a client who runs a business from home and it has been formally deemed by the rateable value etc that the property is 40% business and 60% private.

The property is jointly owned by a husband and wife who are looking to sell it - I was going to do a simple CGT computation to show 40% of the gain being taxable less costs of purchase and sale etc and give two annual exemptions. I've now had another thought - as the business is a soletrader in the husband's name, yet the property is jointly owned is it correct to claim two exemptions or one - I can see an argument both ways!

Any thoughts greatly appreciated

Many thanks!

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12th Feb 2019 11:50

Two.

It's the property that's being disposed of, not the business.

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to Wanderer
12th Feb 2019 11:53

Brilliant!
Thanks Wanderer - seems to make much more sense when you think of it simply like that!
Which is what I was thinking all along until the remnants of the SA brain kicked in!
Cheers!
Denise

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