CGT and property rollover relief
Discussion
First off, I am waiting to speak to my tax advisor on this but thought I'd ask here in the meantime, I can at least ponder the response while im waiting and it may allow me to ask some questions I hadnt considered.
Business owns two industrial buildings, one 60 years 4500sqft and the other for 90 14500sqft.
Up until 10 years ago both were used by the business, now smaller one is rented out and other is still in use.
A developer has bought the majority of our estate and is pushing to buy our units, will build residential flats.
There is a potential CPO in place as confirmed by the council if the developer cant negotiate a deal.
We are looking to move and downsize the larger unit, estimated cost of the new unit is half of the value currently offered by the developer for it.
Now as far as I understand, I can rollover partial amount of CGT from the sale of the main unit to the new unit. What happens with the second unit as it isn't directly used by the business for trading? Am I liable for the full gain?
I had been informed that if the buildings are acquired under a CPO then all the CGT is rolled over regardless of existing use.
Does that sound right, anything I've missed?
Business owns two industrial buildings, one 60 years 4500sqft and the other for 90 14500sqft.
Up until 10 years ago both were used by the business, now smaller one is rented out and other is still in use.
A developer has bought the majority of our estate and is pushing to buy our units, will build residential flats.
There is a potential CPO in place as confirmed by the council if the developer cant negotiate a deal.
We are looking to move and downsize the larger unit, estimated cost of the new unit is half of the value currently offered by the developer for it.
Now as far as I understand, I can rollover partial amount of CGT from the sale of the main unit to the new unit. What happens with the second unit as it isn't directly used by the business for trading? Am I liable for the full gain?
I had been informed that if the buildings are acquired under a CPO then all the CGT is rolled over regardless of existing use.
Does that sound right, anything I've missed?
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