Readers’ forum: Parking permit

Since the mid-1980s our client has owned a substantial business park in his own name. The cost of this property including development was less than £1m but the client is keen to sell it soon. There is interest in the park which is likely to result in a sale for up to £7m. It is a sizeable enterprise with many tenants and common grounds and my client devotes most of his time to it employing several staff on maintenance and administration. Despite the client’s active role I understand that the park will not qualify for capital gains tax entrepreneurs’ relief because although it is classed as a business it is a business of holding investments. Is this definitely the case?

It has been suggested that he could transfer the park to a limited company under incorporation relief then...