I have recently taken on a client who has a UK rental property that has in the past been used as a furnished holiday let and also let as a residential property for longer tenancy periods. The property last qualified as an FHL a couple of years ago. It has never been her PPR and she is now looking at possibly selling the property.
Can anyone give me some guidance on two points.
Am I right in thinking that the capital gains computation would need time apportioning for years when it was and was not an FHL, effectively meaning that two gains are declared, one qualifying for Entrepreneur's Relief and one not?
Secondly, if the sale does not take place for about another year or more, would she lose all rights to Entrepreneur's Relief as the sale of the qualifying business asset (ie the property) will be over 3 years since the qualifying FHL business ceased (based on info in HMRC manual CG64065). If this should be the case, would it be possible for her to delay the sale for a couple of years and rent it out as an FHL again to re-qualify for Entrepreneur's Relief?
Many thanks for any contributions.