CGT relief only applies if business is disposed of

I would like to point out an additional aspect of the changes to capital gains tax (GP, 7 March).

The draft legislation for the entrepreneur's relief for sales on or after 6 April, states that relief is only given when the capital gain arises on the disposal of a business. Disposal of an asset used in a continuing business, without disposal of the business itself, does not qualify for relief.

For example, a practice sells its premises, perhaps when moving into a new rented surgery, no entrepreneur's relief will be available as the business activities are continuing. Using the example from the article on page 39, this would increase the tax payable from £43,344 to £79,344.

Luke Bennett, Winter Rule Chartered Accountants, Truro, Association of Independent Specialist Medical Accountants.

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