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TonyTax
TonyTax, Tax Consultant
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Can someone advise please. I sold my business in Dec 2014 and

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Can someone advise please. I sold my business in Dec 2014 and want to know if I can claim Business Asset Rollover Relief if I invest £150k into my sons business who is in Denmark. Or is it possible to claim Personal Tax Relief?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi. Can you tell me exactly what the investment will get you in terms of new business assets please. Is the company registered in Denmark or the UK?
Customer: replied 1 year ago.
Its registered in Denmark I will be one of the Directors. The company he is starting is to renovate houses. So the benefit will come when selling the property or if it goes rental. Money will go to starting company and buying a house that needs renovating
Expert:  TonyTax replied 1 year ago.
Thanks.
Can you tell me how much of the company you already own please.
Customer: replied 1 year ago.
I will owe 80% of it. its being registered as we speak (email)
Expert:  TonyTax replied 1 year ago.
Thanks.
Leave this with me while I draft my answer. It will take a while so please bear with me.
Customer: replied 1 year ago.
Okay thank you very much for your time :)
Expert:  TonyTax replied 1 year ago.
Hi again.
BUSINESS ASSET ROLLOVER RELIEF
The fact that the business is abroad doesn't preclude you from claiming business asset rollover relief as you will read at:
http://webarchive.nationalarchives.gov.uk/+/http://www.hmrc.gov.uk/manuals/CG4manual/CG60253.htm
so long as the disposal of your previous business assets and the acquisition of assets for the new business meet the qualifying criteria as set out in HS290 here:
https://www.gov.uk/government/publications/business-asset-roll-over-relief-hs290-self-assessment-helpsheet/hs290-business-asset-rollover-relief-2015
My concern is that you intend to buy a property to renovate and sell or rent. Letting is probably not a good idea unless it is a very small part of the business. The properties you renovate and sell will not so much be business assets as stock.
Normally, business asset rollover relief is given for the disposal and acquisition of assets which have been and will be used in the business on an ongoing basis such as offices, factories, plant and machinery etc. See the list under "Getting relief for the assets you have disposed of in HS290.
If you look at CG60970 at the link below, to my mind this pretty much kills off any chance of a successful claim for BARR in your case.
http://www.hmrc.gov.uk/manuals/cgmanual/cg60970.htm
ENTREPRENEURS' RELIEF
If you cannot claim business asset rollover relief, you might consider a claim for entrepreneurs' relief which if successful will limit any CGT charge to 10% of the net taxable gain made on the disposal of your business. Take a look at HS275 at the link below for more information on ER.
https://www.gov.uk/government/publications/entrepreneurs-relief-hs275-self-assessment-helpsheet/hs275-entrepreneurs-relief-2015
I hope this helps but let me know if you have any further questions.
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