Readers’ forum: Will relief be available on the sale of business premises?

I am trying to get my head around the associated disposal rules for business asset disposal relief (BADR).

My clients Tom and Jerry (not their real names) were in partnership for many years in an architects’ practice. They had a 50-50 interest in the partnership but the business operated from freehold premises which were owned personally by Tom and for which the partnership paid rent.

The practice was sold 18 months ago but Tom continued to own the premises and the new owners of the business paid him rent for the use. The new owners have said that they would like to buy the premises from him. Assuming that this takes place within the next six months will Tom be able to obtain BADR on the disposal of the property as an associated disposal? If so will there be a restriction for: (a) the fact that rent...