CGT on second property - sole trader

[BJDB]

Hello,
Looking for some advice regarding CGT sale on a second property. I have had the property for nearly two years, essentially for short term lets. I set up as a sole trader as the income generated was my primary source of income. The property is however in joint names with my wife. We are now looking to sell the property and would like to understand how CGT works.
Questions i'm looking to clarify are:
a) I read a bit about entrepreneurs' relief and believe I may fulfill the criteria. The flat is the the main asset, i'm selling it and essentially closing down the business. Additonally, as i'm a sole trader and have owned the flat for more than 1 year, can I claim entrepreneurs' relief at 10% tax on the capital gain?
b) As the flat is in joint names, can my wife and I utilise our joint CGT allowance 2 x £11,300 = £22,600. Is this the case even if I apply enterpreneurs' relief?
c) As I understand it, I can offset legals, stamp, sales fees and any capital expenses such as double glazing (previously single), significant bathroom upgrade?

On the basis of the above assuming I sell for £145k, the original purchase was £100k = £45k gain
£22,600 is not taxable as part of an unused allowance for my wife and I.
£9000 costs per (c) above

£45k less £31,600 = £13,400
I would pay 10% on £13,400 = £1340.

Appreciate if my understanding i correct?

Thanks for your assistance.

[AdamS93]

Hello,
Looking for some advice regarding CGT sale on a second property. I have had the property for nearly two years, essentially for short term lets. I set up as a sole trader as the income generated was my primary source of income. The property is however in joint names with my wife. We are now looking to sell the property and would like to understand how CGT works.
Questions i'm looking to clarify are:
a) I read a bit about entrepreneurs' relief and believe I may fulfill the criteria. The flat is the the main asset, i'm selling it and essentially closing down the business. Additonally, as i'm a sole trader and have owned the flat for more than 1 year, can I claim entrepreneurs' relief at 10% tax on the capital gain?
b) As the flat is in joint names, can my wife and I utilise our joint CGT allowance 2 x £11,300 = £22,600. Is this the case even if I apply enterpreneurs' relief?
c) As I understand it, I can offset legals, stamp, sales fees and any capital expenses such as double glazing (previously single), significant bathroom upgrade?

On the basis of the above assuming I sell for £145k, the original purchase was £100k = £45k gain
£22,600 is not taxable as part of an unused allowance for my wife and I.
£9000 costs per (c) above

£45k less £31,600 = £13,400
I would pay 10% on £13,400 = £1340.

Appreciate if my understanding i correct?

Thanks for your assistance.

The best advice I can give you is to go and see a local tax adviser.

You will generally qualify for entrepreneurs relief if the property business qualified as a furnished holiday let (FHL) of which there are VERY specific rules regarding the number of days the property can be let to any one person(s) and so on.

You say you own it jointly. Have you declared the income 50:50 on yours and your wife's tax returns?

There is case law on replacing single glazing with double-glazing. This would generally be considered revenue expenditure. As for the bathroom, it would depend on whether it is considered revenue expenditure (offset against the property business income) or capital expenditure (no deduction from profits but as you say a deduction for capital gains tax purposes)

[bd6759]

Renting a property is not a trade, so you are not a sole trader.

If a property is jointly owned by husband and wife, by default the income is earned 50/50 for tax purposes. Your wife ought to have declared half the income.

The gain on disposal should also be split 50/50. Entrepreneur's relief does not apply.