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Ask Your Own Question, Chartered Certified Accountant
Category: Tax
Satisfied Customers: 5141
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I own a small business park with a book value of £290000 on

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I own a small business park with a book value of £290000 on which I owe £99000 iwish to hand it over to my children. purchased in 1982 for £28050 will I be liable to capital gains tax?
Thank you for your question.Transfer of the business park to your children is deemed disposal of asset. This is chargeable to capital gains. You will be liable to capital gains tax. If you have run the business as a sole trader or as in partnership, then you will be able to avail entrepreneurs' relief and pay capital gains tax at 10% instead of the normal rate of 18% or 28%, provided the business has been run for at least one year.More information on Entrepreneurs' Relief can be found here If there is no consideration, then you should be mindful of the fact that this gift would be regarded as a potentially exempt transfer for inheritance tax purposes and the seven year rule would apply. Basically, if you survive for 7 full years from the date of the gift, then this gift is out of scope of IHT, i.e. is excluded from your assets to ascertain the value of the estate.More information on potentially exempt transfers can be found here I hope this is helpful and answers your question.If you have any other questions, please ask me before you rate my service – I’ll be happy to respond. and other Tax Specialists are ready to help you
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