How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

My wife and I bought a care home in 2003 for £265k which we

Resolved Question:

My wife and I bought a care home in 2003 for £265k which we closed in 2004. However, we kept the building and let it on a 10-year lease it to someone who also ran it as a care home. We then sold it last October (2014) to our tenant for £375k. Might we qualify for Entrepreneurs Relief?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

I'm afraid that you won't qualify for entrepreneurs' relief. The business ceased in 2004 and you would have needed to have sold the property within three years of the cessation date in which case you might have qualified for business asset taper relief as entrepreneurs' relief didn't come into being until 6 April 2008, replacing business asset taper relief.

In addition, where what was a business premises is let after 5 April 2008, entrepreneurs' relief is not available for the period between 6 April 2008 and the date of sale in any event.

I'm sorry that my answer is not the one you were hoping for. Let me know if you have any further questions.

TonyTax and other Tax Specialists are ready to help you