FHL gain over £1m what is rate of CGT on excess

CGT query on FHL gain

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Client (higher rate taxpayer) has sold an FHL owned and run as such for over 10 years, gain on sale £1.4m this is the only "business asset" they hold so qualifies for BADR on disposal - 1st £1m taxed at 10% is the remaining £400k taxed at 20% as it is a deemed business that is sold or 28% because it is residential accommodation that is sold.

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By FactChecker
24th Nov 2023 13:47

Question would be better phrased (and easier for you to answer) as:
"Is the specific FHL a residential property?"

The CGT/BADR rates are quite clear once you've ascertained nature of asset.

BTW "the only "business asset" they hold so qualifies for BADR on disposal" is somewhat misleading ... in that what matters (amongst other factors) is whether the individual has *previously* made use of BADR (or ER in its earlier incarnation) for any disposals - as the BADR cap is a lifetime limit, not per individual disposal.

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By Caerlyr
24th Nov 2023 13:53

No previous use of BADR (or ER in previous incarnation) this is their first qualifying disposal

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