Tax FAQ
Entrepreneurs Relief
I own a business which I intend
selling in the near future. It is a property rental business where
residential properties are rented to private individuals. What rate
of CGT will I be liable to and can I get Entrepreneurs Relief on
the gain?
Entrepreneurs Relief which was introduced from April 2008 has
replaced the old Taper Relief and follows the same general rules.
It enables owners of businesses to sell them and receive relief on
up to £1,000,000 of the gain by taxing it at 10% rather than the
standard 18%.
However, although property rental is seen as a business it is
not recognised as a trade and only trading businesses can benefit
from the relief. Only if they were holiday lets would they be
recognised as a trade. In your case therefore you will be subject
to the standard 18% on the total gain on disposal.