Five flats

My client purchased a property arranged in five flats and situated in the heart of a seaside holiday resort. The property was in serious need of renovation and it has taken him three years to make it fit for holiday letting; mainly because of his other commitments which have no relation to the property under discussion. The property was unused during those three years and my client intends to use the property for holiday letting as soon as he can and for several years into the future.
It is well known that the provision of holiday letting accommodation is (subject to the various conditions) treated as a trade for capital gains tax purposes and business asset taper relief is available. Business asset taper relief is available for disposals of shares in a trading company after April 2002 and the legislation goes out of its way to include activities for the...