CAPITAL GAINS TAX RELIEFS

The property would be a qualifying asset in respect of roll-over relief for replacement of business assets.

The letting activity would also qualify for hold-over relief on the gift of business assets.

 Capital gains tax relief is available for losses on loans to a trader undertaking furnished holiday lettings.

By itself a disposal of let property will not qualify for the new entrepreneurs’ relief introduced from 6th April 2008.

However, if the property is let to a trading partnership of which you are a member, or to a trading company of which you are an officer or employee, you may be entitled to a measure of relief on disposal of the property if that disposal is a associated with a disposal of your interest in the partnership, or of your shares in the company and that other disposal meets all the conditions for the relief.

For disposals of furnished holiday lettings prior to 5th April 2008 the property is a qualifying business asset for taper relief purposes in calculating the taxable gain.