Entrepreneurs' Relief on selling company running buy to let rental properties?

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    Entrepreneurs' Relief on selling company running buy to let rental properties?

    As far as I'm aware, Entrepreneurs' Relief to reduce CGT doesn't apply to a run-of-the-mill limited company that buys and rents out buy to let properties (not holiday lets etc.) without significant development work. We haven't developed the properties other than relatively minor works like new laminate flooring, DIY repairs etc.

    However, every chartered accountant or tax expert I go to see for initial consultations keenly suggests it as an option as we're looking to sell our company.

    Therefore, I was wondering if there is any way Entrepreneurs' Relief could be used to pay CGT at the lower rate for a company running a portfolio of UK residential rental properties please?

    If it did, it'd save us a huge amount of CGT.

    Thank you.

    #2
    I don't see any way it's applicable, unless (I'm guessing) you're selling the entire business with its assets (and, even then, I'm not sure).
    If you've ever charged rent for an asset, it's an investment asset, not a business asset and that makes it ineligible as far as I know.

    On the other hand, I've never wanted to be wrong more!
    Maybe there's been some development I'm not aware of, if all of them are suggesting it.
    When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
    Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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      #3
      This paragraph below, is copied from HMRC Helpsheet. HS275 ( 2019 ) .

      "References above to ‘business’ includes any trade, profession or vocation, but do not include the letting of property unless this is furnished holiday lettings in the UK or European Economic Area (EEA). See page UKPN 2 in the UK property notes for guidance on furnished holiday lettings in the UK or EEA."

      The relief which can be claimed by individuals does not include "letting of property".

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        #4
        Best of luck but as I think you know you have no chance with an investment business.

        Spend the next 2 years buying and selling (ie trading) and make sure that 51%+ of the company profits come from trading and I think you have a shot but definitely take legal advice

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