What About Commercial Property?

Commercial property has enjoyed a favourable status under taper relief rules and there has been a strong argument in favour of keeping property ownership in the hands of individuals rather than in a company.

The abolition of taper relief may mean a significant increase in the CGT bill on the disposal of commercial property. The introduction of ER will not do much to reduce the problem. The only situation in which ER will generally be available on the disposal of commercial property will be by means of an ‘associated disposal’.

This means that the sale of assets used in a partnership or by a company but owned by an individual will only qualify for relief if the assets disposed of are ‘associated’ with the withdrawal of the individual from participation in the partnership or the company.

No ER will be available on the disposal of property which previously qualified for business asset taper because the property was let to another trader or an unconnected trading company.

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Please contact us to discuss any of the matters raised

In this issue

Entrepreneur's Relief Special - Summer 2008

What About Commercial Property?

Please
contact us to discuss any of the matters raised