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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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With regard to Capital Gains Tax - Can I get Business Asset

Resolved Question:

With regard to Capital Gains Tax - Can I get Business Asset Rollover Relief if I use the proceeds of the sale of a flat I have previously and for several years rented out on 6 month Rental Agreements to buy a property that I rent out for holiday lets. I do not intend to use this holiday lets property for my own holidays as I shall be running it as a business.
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

I'm afraid that you won't qualify for business asset rollover relief as the asset you are selling, a flat let on shorthold tenancies, is deemed not to be a business asset, at least in the hands of an individual. Under current rules, both the asset being sold and the asset being acquired have to be business assets. You can read about business asset rollover relief here.

There has been a case recently which had muddied the waters somewhat and you can read about that here. HMRC is considering an appeal.

I hope this helps but let me know if you have any further questions.
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