Would a partnership with 29 tenancies be able to claim retirement relief?

Would a partnership with 29 tenancies be able to claim retirement relief?

0:01 AM, 2nd January 2025, About A week ago 12

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We’ve been working at our property rental business since the 80’s and now have 24 flats and an HMO with 5 tenants. I had hoped to move them into a limited company but thanks to Dan Neidle that’s no longer an option.

My husband has Parkinson’s and I just can’t handle it all as I did when I was younger so I’m just trying to work out the best exit strategy. I have been looking at retirement relief but don’t fully understand If it would apply to us.

We seem to be penalised at every turn, landlords seem to be considered pariahs as far as the government and tax regime are concerned.

Any suggestions are gratefully received and happy New Year to you all 😊

Linda

Editor’s Note:

Retirement relief, (now Entrepreneur’s Relief, and recently renamed to Business Asset Disposal Relief in the UK) applies under specific conditions. Generally, it allows you to pay a reduced rate of Capital Gains Tax (10%) when selling or disposing of business assets, but it’s typically available for trading businesses, not passive investments as Landlords are incorrectly labelled by HMRC.


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Mark Alexander - Founder of Property118

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10:46 AM, 8th January 2025, About A day ago

Reply to the comment left by Christopher Shaw at 08/01/2025 - 10:44
Hi Chris

The answer is Yes but the tax consequences need to be thought through properly. This isn’t the place to do that. Please contact your Property118 consultant.

Ryan Stevens

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11:09 AM, 8th January 2025, About A day ago

Reply to the comment left by Christopher Shaw at 08/01/2025 - 10:44
The answer is yes, there is nothing to stop you transferring a property into a company.

However, speak to a tax advisor, ideally a member of the CIOT (Chartered Institute of Tax), because you should understand the tax consequences of such a transfer and what the tax position is once the property is in the company, the position on subsequent probate, etc. Once a property is in a company it is expensive to unravel.

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