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Enterprenuers Relief on Property Sale

Enterprenuers Relief on Property Sale

My partnership client purchased premises in 1982.  These premises were used exclusively for the business until August 2008 when the trade was moved to new premises.  The old premises were empty until sold for redevelopment on 5 April 2012.

The partnership has six partners, five of whom owned the premises until they were sold.  One property owner retired on 31 May 2007 and another two on 30 September 2008.

Is any enterprenuers relief available for any partner for any period of ownership (as the premises were used by a partnership so would have qualified for business taper relief up to 5 April 2008)?


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27th Nov 2012 13:47

ER depends on ownership of asset

First  establish if the property was a partnership asset - held by the partnership or an asset held by individuals and used by the partnership. If the later you have a chance that ER will apply for the retiring partners where those individuals were joint owners of the property under TCGA 1992 s 169I(8)(c).

If the partnership owned the building all it has done is disposed of a partnership asset and ER will not apply as there needs to be a disposal of part or all of the partnership business see HMRC CG manual para CG64040.

I'd recommend the Bloomsbury Professional core tax annual CGT 2012/13 which has a very good chapter on ER. 


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28th Nov 2012 11:13


The premises were treated as a partnership asset on the balance sheet.  No rent was paid to the property owners.  However I have been to tax courses where the lecturer said unless all partners owned at least 1% of the asset, it was not a partnership asset.

I have read lots of books and different articles but to be frank am still as uncertain. I will buy the recommended book.

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