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Issue:
4160
/
Categories:
Comment & Analysis
, Finance Act 2008
, Capital Gains
, Land & property
, VAT
Exactly what is the impact of a rent charge on entrepreneurs' relief? KEVIN SLEVIN investigates whether the payment of such consideration, now or in the past, can lead to the loss of relief
KEY POINTS
- The legislation applies to 'qualifying business disposals'
- Some worked examples
- Does letting reduce the relief available?
- Calculating the 'rent restriction'
- The effect of rent paid before 6 April 2008
- The application of the legislation to trusts
This article focuses on situations where the decision to charge rent may impact on the outcome of a claim to entitlement to entrepreneurs' relief under the soon-to-be TCGA 1992 ss 169H to 169S currently found in Finance Bill 2008 Sch 3. Unless noted otherwise all references below are to the new ss 169H to 169S.
The focus of this article is solely upon the capital gains tax issues. In each of the scenarios explored it is likely that there will be VAT and stamp duty land...
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