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 bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3817
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I have used an apartment i purchased as my office it has never

Customer Question

i have used an apartment i purchased as my office it has never been rented out and i am thinking of retiring does the capital gain qualify for entrepeneurs relief
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. The position is quite complex and you can real all about it here: https://www.gov.uk/entrepreneurs-relief/work-out-your-tax However, it is pretty clear that you do indeed qualify for Entrepreneurs Relief (ER) which limits Capital Gains Tax (CGT) to a flat rate 10%. You have three years in which to dispose of your business assets. It is only the gain which is taxed and you do have an Annual Exempt Amount (AEA) of 11.1K to offset any gain. The gain is the difference between the purchase and disoposal prices. The acquisition price is the cost plus purchase costs plus any improvement eg installation of double glazing, central heating, extensions but not routine maintenance which is allowable against your business income. The selling price is the net sum received after deducting selling costs. The difference between the two being the gain. I do hope that my reply has been of assistance.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

Related Tax Questions