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 Sam Your Own Question
Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14218
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
16196420
Type Your Tax Question Here...
Sam is online now

I have a client who owned a shop and flat. For a number of

This answer was rated:

HiI have a client who owned a shop and flat. For a number of years him and his wife ran the shop business and lived in the flat. After approx 10 years they decided to stop running the business and let out the shop and flat for which rental income was delared. He now has sold the property. I have split the property gain between the shop and flat and applied PPR and letting relief for the flat proportion. This proportion of gain has reduced to zero with the reliefs. However,regarding the shop, although it is a commercial premises, am I right in thinking that we cannot claim Entrepeneur relief because when sold it was not used in his business? I have assumed, that the shop gain will be subject to the basic rates. Will this be 20% or 18% ( both basic rate tax payers)? or have I missed something?Bev

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

HI Bev

Your assumption re entrepreneurs relief not being due is I am afraid correct, as this has just become a rental property at the time of sale and not an assets of the business. which had long ceased.

The rate will be a mix of 10% if the gain with annual income is still below the basic rate band or a mix of 10% (equivalent basic rate band) and 20% for anything over basic rate band (18% and 28% are for residential property which this is not its commercial)

Let me know if I can assist further

Thanks

Sam

Customer: replied 4 months ago.
Excellent, He is a basic rate taxpayer so shall pay 10%Thank you

Hi

You are very welcome

If you could take the time out to rate me for the level of service I ahve provided it would be appreciated (or click accept)

Thanks

Sam

Sam and other Tax Specialists are ready to help you