11:22 AM, 13th April 2021, About 2 years ago 7
Hi I am selling a property mainly due to the financial consequences of covid and like so many landlords we are classed as an ‘excluded’ group by the Gov’t so just have to take the financial hit. The property was my first investment property which I have improved significantly and let for over 10 yrs so there will be a CGT liability. Not massive but still more cash to the Gov’t that at the moment I need.
I had a look at CGT reliefs and I am wondering if residential property to let qualifies for Business Asset Roll-over relief. This would require reinvestment in the same type of asset within 3 years which would be quite feasible for me.
Information online often talks about agricultural businesses and residential property doesn’t appear to be specifically mentioned.
So if anyone has some knowledge, experience of just signposting to information that would be great.
Probably the best bit of online information I found is outlined below –
You can claim the relief if:
you are trading (including companies)
you are carrying on a business of furnished holiday lettings
you are occupying commercial woodlands and managing them commercially to make a profit
you are carrying on a profession, vocation, office or employment
you are providing an asset to your personal company (i.e. you are able to exercise 5% or more of the voting rights) which has been used in it’s trade
you have disposed of land by a compulsory purchase
If you are a trader you can claim relief if you use the old and new assets in:
the same trade; or
another trade that you carry on at the same time or shortly after you have ceased the first trade.
A claim can still be made if there is a gap of three years or less between one trade ending and another beginning.
Qualifying assets – Both the old assets and the new assets must be:
interests in buildings or parts of buildings
interests in land
fixed plant or machinery
ships, aircraft, hovercraft, satellites, space stations and spacecraft
milk, potato or ewe and suckler cow premium quotas