A mother and son own a property that is let out as a furnished holiday letting that meets the qualifying conditions.
The mother is now going to be running the letting business on her own and it has been agreed that she will receive all the rental profits. Having looked through the HMRC manuals, I do not think this is a problem as it might be if the property were not an FHL.
My query is whether the son would still qualify for entrepreneurs' relief if the property were sold as he is now effectively a sleeping partner in the FHL business, although he is still a part owner of the property? If not, would any future gain need to be time apportioned so that entrepreneur's relief is available for periods when he was receiving a share of the rental profit and CGT at UK residential property rates would be due for periods that he did not?
Thaks for any comments.