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I am sorry I don't understand. Will there be CGT due from the roll over from the previous B & B? Does that fact that the business was closed in 2013 have any bearing on when any CGT should be paid? As my partner has now retired from the business does this effect the CGT? Is there any circumstance in which the CGT from the previous sale can be written off?
No, if there is any CGT to pay it will be on the "gain" from the second B & B. The cost of your partner's share of the second B & B will be calculated by deducting the gain from the first B & B from the cost of his share of the cost of the second B & B. The whole point of rollover relief is to defer a gain, possibly forever. Whether there will be CGT to pay on the second sale depends entirely on the figures. If the gain on the previous B & B sale was £50,000 and the cost of your partner's share of the second B & B was £120,000, then his net cost for CGT purposes of his share of the second B & B will be £70,000 (£120,000 - £50,000).If the business ceased in 2013, you have three years from the date the business ceased to sell the business property in order to claim entrepreneurs' relief (see HS275 here) which would reduce the rate off CGT payable to 10%. If the property was let after the business ceased, then entrepreneurs' relief will be restricted and some CGT may be payable at 18% or 28% or a combination of the two rates. If the property is sold in the current tax year, 2015/16, any CGT will be payable on 31 January 2017.
The previous gain your partner made is simply rolled over and reduces the cost of his share of the second business as my example in the second paragraph above shows. It isn't written off but that doesn't mean there will be CGT to pay. As I said in my previous post and again above, it depends on the figures.
Thanks. I do not have all the figures from his previous sale so I cannot be more specific. I think that applying what you say in your second paragraph, if his cost of the share of the property is reduced by his previous gain then when the present property is sold he will make a gain and therefore become liable for CGT. I realise now how complex this all is but thanks for the explanation.
You have got it right.
Thanks and good luck.