Our query concerns capital gains tax entrepreneurs’ relief. Two brothers have owned a freehold commercial property for some 25 years which is unencumbered. Throughout this time the property has been used by their limited company to operate a vehicle repair servicing and MOT centre.
The property and the company are both owned by the brothers in equal shares.
The business is operating at a loss and in present economic conditions there is no realistic expectation of this changing. Furthermore the brothers wish to retire. The limited company/business has no value.
The brothers had hoped to sell the freehold property and close the business at the same time as completion. In this situation we have no doubt that they would be entitled to entrepreneurs’ relief.
However sales of the property having fallen through twice and there being no real prospect of a sale being achieved in the present economic climate...
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