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TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 17157
Experience:  International tax
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My wife and I have owned a retail property 25 years.

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My wife and I have owned a retail property for over 25 years. I owned a company trading there until seven years ago. It has been leased since.
The tenant has asked to buy the freehold.
How can I mitigate the capital gain ? Can I roll it over by reinvesting in other property.
What are the available offsets
many thanks in advance
HelloIf the tenant buys the freehold it is not a transfer of a going concern. Your capital gain will be determined by the difference in value and sell price (less costs to sell).Investing in another property will not offer you relief unfortunately from the gain on the sold property. Business Asset Rollover Relief, where the gain is rolled over into a replacement asset and tax deferred until you sell that asset or roll the gain over again.The relief applies to trades but HMRC does not regard a rental business as a trade unless it qualifies under the Furnished Holiday Lettings rules.
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