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DearCustomer Thank for that. Vary useful
On the capital gains tax, there is no holiday let and the present let property and the one to be let have never been lived in by me or my wife, so maybe this letting relief of £40,000 is not relevant ?
On the VAT side are you saying that so long as VAT is not charged on the rents, then an eventual sale of the property should be able to avoid any VAT implications ? Does the VAT registered business complicate matters ? I've looked at the Profit and Loss Account (there is no Balance Sheet showing the property as owned by the business; its in my own and my wife's name) and all I can see is a tiddly amount of 'shop rates and lighting and heating, going back to the time when the storage area was active.
I did say 'may' and as you never occupied then Lettings Relief indeed would not apply so CGT would be levied on the gain less 11.1K. If the ownership is joint each owner would be taxed on half the gain and both have an Annual Exempt Amount.
Correct; if you elect not to charge VAT on residential rentals, normally an exempt supply, then the final sale price is not subject to VAT. I would not be over concerned about what happened many years ago. Presumably you did not register your business for VAT.
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Many thanksCustomerand I think I'm almost there and happy with your answers ' Just to clarify one point -
You say at the end that 'presumably you did not register your business for VAT'. If you mean the rental business, the answer is 'NO'. The registration relates to an entirely separate business in joint names that has been going for a few years now.