Business Porpoerty sale

[SPD]

Hi All

I am a small shareholder, 5.5%, in an old family business and fact finding at present. The company was incorporated in 1919 where it traded as a barge company. Business demands meant that business ceased to a point where the buildings were kept with in the family business, a Ltd company, and let out to local businesses; the company receiving rent as an income and being responsible for maintenance. The time has come where the business needs to reassess activities. The plan is to sell both buildings or keep one, letting this for 3-4 years and selling the other. Would the shareholders be eligible for Entrepreneur's Relief on the sale of a single building or both buildings and the company ceasing to trade or would CGT rates apply.

Thank you

[LozaACCS]

The company is liable to corporation tax on the receipt of letting income and will also be liable to corporation tax on any gains arising on the sale of the buildings.
The capital gain arising in the company is calculated using CGT principles but is then charged to CT, note that indexation relief is still available to companies, given the age of the assets It may well be the case that the gain will be less significant then you believe.
ER is available to individuals (not companies) on a material disposal of business assets, a sale of shares can be a material disposal but not in this case since the only income of the company appears to be rental income which fails the required obligation for the disposal to be of shares in a trading company.