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Where Taxpayers and Advisers Meet

Entrepreneurs Relief - complication - rented flats

taxbill
Posts:35
Joined:Wed Aug 06, 2008 3:42 pm

Postby taxbill » Tue May 27, 2008 4:05 am

An individual shareholder who has held shares in a Property Factoring company for 10 years wishes to sell his shares and take advantage of entrepreneurs relief. In addition to the normal trading income from factoring the company also owns a number of flats which are rented out. The capital value of these flats has increased over the years and represent around half the value of the shares being sold.
Does the fact that part of the share value comes from rented flats affect his entrepreneurs relief.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Postby pawncob » Tue May 27, 2008 8:30 am

The letting of property does not constitute a business for E.R. purposes, and the gain will not be a gain on "chargeable business assets",so any relief will have to be apportioned as was necessary under the retirement relief rules.
With a pinch of salt take what I say, but don't exceed your RDA


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