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Entrepreneurs’ relief and assets sold within three years of business cessation
Capital gains tax entrepreneurs’ relief is available on the sale of assets used in a trading partnership when assets are sold within three years of cessation of the partnership business.
The relevant legislation suggests that the assets only need to be in use by the business at the date of cessation.
I would welcome readers’ thoughts on the following scenario. A partnership acquired a property to use in its trade but due to unforeseen circumstances it let the property for two years first of all. It then used the property in its trade for two years up to the date of cessation of the business.
Am I correct in thinking that there would be no restriction of entrepreneurs’ relief if the property was sold within three years of cessation because this is not an associated disposal?
Query 18 429 – Earl
Reply from Steve Kesby
I...
