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My client is a self-employed car mechanic and owns a row of three garages, which he purchased some years ago for £5,000. He originally used all of these for carrying out car repairs, but for the past five years he has only used one of them and rents out the others to two mechanics who carry on their own separate businesses from them and who pay rent to my client. The garages are now worth approximately £60,000 and my client is considering selling them. I am trying to estimate the potential capital gains tax liabilities arising and have the following questions.
My client is a self-employed car mechanic and owns a row of three garages which he purchased some years ago for £5 000. He originally used all of these for carrying out car repairs but for the past five years he has only used one of them and rents out the others to two mechanics who carry on their own separate businesses from them and who pay rent to my client. The garages are now worth approximately £60 000 and my client is considering selling them. I am trying to estimate the potential capital gains tax liabilities arising and have the following questions.
First is he entitled to business asset taper relief on the whole property or only on part?
Secondly if only on part would the taper relief position be improved if he were to sell the garages separately?
Lastly if he did sell separately to...
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