Property redevelopment.

[dumas73]

Hi

I hope you can shed some light on this.

I have owned my own business since 2006 and the premises( bungalow) are held by me personally and used solely for business purposes..

I have not charged any rent to the company.

Recently there has been a conversion of approximately 30 per cent of the building to ancillary domestic use i.e. for use by staff only ( cannot be leased mortgaged sold separately etc).

In the fullness of time I intend to close the business, retire and then develop the site into two bungalows for letting purposes.

I paid 210,000 for the property in 2006 and, if done today, the bungalows would be worth approximately £500,000 each.

I understand that there may be some implications for entrepreneurial relief if I charge partial rent on the premises as they stand at the moment, but i was wondering what the brand tax implications of a disposal of the new development would be further down the line.

Regards

Dumas