PPR, Lettings and ER question

Sale of B & B

Didn't find your answer?

Hi,

Client intends to sell their B & B for £1 million, bought for £500,000. They have calculated the private element (or usage if you will) of this building and grounds to be 60% with the remainder being B & B business usage.

He has lived in his part of the 'house' for the whole time of his ownership and 60% of the gain is therefore going to be covered by PPR. The B & B element was managed by his close company which will be dissolved before the sale of the property but the property as a whole is in the client's name personally.

I have found reference in Tolleys and on HMRC's CG manuals to lettings relief being allowed on the element of the gain relatting to hotels or guest room use.

My questions are theses:

1) Can he get lettings relief on the non private element of the gain?

2) Presumably as the business part was used in his personal co then ER will apply on the gain left over?

Any answers and input will be appreciated.

Thanks

Liam

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.