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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15975
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My wife and I bought a care home in 2003 for £265k which we

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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?


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.

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