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Commercial property sale CGT rate please

Kiran
Posts: 17
Joined: Wed Aug 06, 2008 3:38 pm

Commercial property sale CGT rate please

Postby Kiran » Fri May 19, 2017 4:12 pm

A lady carried out a trade from a shop premises as a hair dresser, owned the shop for many years. Then she retired and leased that shop for past 15 years (tenant – hair and beauty saloon – no residential flat , pure commercial trade..). Some 6 years back she added her husband’s name as a joint owner. Now they are trying to sell the premises.

I think, entrepreneur relief should be allowed and CGT should be at 10%. She gifted half ownership to her husband (who never carried out any trade there), should not make any problem. Capital gain is – original cost less sale proceeds (net of allowable expenses), because gift transfer was between husband and wife, no concern about valuation at the date of gift.
Am I thinking correctly? Please advise.
Also, if any example in taxation manual kindly quote.
Many thanks. K.

bd6759
Posts: 2231
Joined: Sat Feb 01, 2014 3:26 pm

Re: Commercial property sale CGT rate please

Postby bd6759 » Fri May 19, 2017 4:30 pm

Why do you think ER will apply to the disposal?

Kiran
Posts: 17
Joined: Wed Aug 06, 2008 3:38 pm

Re: Commercial property sale CGT rate please

Postby Kiran » Fri May 19, 2017 5:37 pm

Sorry, I got it all wrong, didn't I? Property is sold which is commercially let. No relief due. The tax will be at 10% ( up to basic rate limit) and then at 20%, and none at higher rate, because this is not a residential property. (Business ceased many years ago so no ER due.) Tax will be payable by 31 Jan 2019 if sold in a couple of months. Am I correct now?
Please guide. Thanks.


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