New queries, issue 4563

Entrepreneurs’ relief

Entrepreneurs’ relief on a property disposal when rent is received.

My client sold his controlling interest in a private limited company in June 2013 and claimed entrepreneurs’ relief on the gain in 2013-2014. The company occupies premises 50% owned by my client. He acquired the property in June 1993 and it has been let at a commercial rent throughout the period of ownership.

My client intended to retain the property for its rental investment income but sold it in January 2016.

Does the gain on the sale of the premises qualify for entrepreneurs’ relief as an associated disposal of a business asset within three years? Is this muddied by the fact that he continued to receive rent from the date of the share disposal to the sale of the property?

I appreciate that the gain will need to be time apportioned to exclude the period after...