Mixed Use Property what rate CGT

Mixed use property which rate of CGT to use on business portion 10/20% 0r 18/28%

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Client is disposing of a property which he lived in but also used part of the property exclusively for business. Approx 80% was private use and 20% of the property was used for business so there will be some CGT to pay on the part of the gain that relates to that business use. It does not qualify for entrepreneurs relief  and any private use of the business bit was insignificant.

On the capital gain relating to the business bit of the property would this assessed at 10%/20% or 18%/28%?

 

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By Tax Dragon
07th Aug 2020 14:24

Sch 1B.

You should work the answer out for yourself, based on all the facts (rather than take any proffered here, based on b***** all), but note the "suitable for use" clause in para5(1)(a).

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By Openhouse
07th Aug 2020 16:31

Sorry if this seemed a daft question. I had spent a couple of hours trying to determine the rate to use. I operate as small sole practitioner and couldn't find the definitive answer. I had already spoken to 2 respected tax specialists and got 2 different answers based on this basic scenario; one said 10/20% the other said 18/28% hence my question. The client runs a business from 2 rooms in his house which are used exclusively for business and both specialists agreed there will be a capital gain to tax on the business part of the gain ( both also agreed that entrepreneurs relief was not available).
If it's not as straight forward as I am presenting it I can only apologise.

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Replying to Openhouse:
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By Tax Dragon
07th Aug 2020 16:40

I don't think it's that technical. If the thing being sold is a residential property, then the residential property rates apply.

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