Avoiding CGT on property sale

[caiss4]

Here's the situation. Wife and I have joint owned a holiday home for 7 years which we have operated for holiday letting. Just recently we have decided to purchase a BTL property. This purchase is not contingent on selling the holiday home, however, there is a possibility that the sale of the holiday home could give rise to a CGT charge.

I haven't done the sums yet but our double CGT allowance may be less than the 'profit' on the sale. Either way, it would not be a huge sum subject to CGT (after personal allowances), say, £5k.

Anyway, something in the past I seem to recall suggests that if the proceeds from one business (holiday letting) are re-invested in a new business (BTL)then CGT would not be applicable at all. The reality is that the BTL will cost £20k less than the sale price of the holiday home - would this make a difference? Or am I making all this up?

[Eric Mc]

Is the Holiday Home sale eligible for Entrepeneurial Relief?

[caiss4]

Eric Mc said:

Is the Holiday Home sale eligible for Entrepeneurial Relief?

What might that be? I would imagine from my ignorance the answer is a no though.

ETA: just googled Entrepreneurs Relief and possibly it does qualify as the income from the property has been treated as furnished holiday let income for tax purposes to date. Need to read up a bit more methinks.

Edited by caiss4 on Sunday 17th March 13:04

[Eric Mc]

Holiday Lets are a bit different to ordinary Rental Properties. A Holiday Let is much more in the way of a trading activity rather than a property investment - therefore some aspects of certain tax reliefs available to businesses but blocked for rental properties are actually applicable to certain types of holiday letting arrangements.

You need to check out the particular circumstances of your holiday let and get some proper professional advice.