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Roll-over relief for individuals with Property income?

MalMal New MemberRegistered Posts: 13
Is the roll-over relief, available for businesses (Sole Trader, Ltd Co's etc.), also available for individuals who have property income?
i.e. My client, as an individual, has several rental properties and he sells one and then invests some or all of the proceeds in a further, more expensive property that he then rents. Can he roll-over the gain in the same way as a business?

Comments

  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    Mal wrote: »
    Is the roll-over relief, available for businesses (Sole Trader, Ltd Co's etc.), also available for individuals who have property income?
    i.e. My client, as an individual, has several rental properties and he sells one and then invests some or all of the proceeds in a further, more expensive property that he then rents. Can he roll-over the gain in the same way as a business?

    Been told roll over relief is only for business not s/t
  • MalMal New Member Registered Posts: 13
    Mal wrote: »
    Is the roll-over relief, available for businesses (Sole Trader, Ltd Co's etc.), also available for individuals who have property income?
    i.e. My client, as an individual, has several rental properties and he sells one and then invests some or all of the proceeds in a further, more expensive property that he then rents. Can he roll-over the gain in the same way as a business?
    Thanks. Roll over relief is definitely for S/T as well as partnerships and companies - this is made clear in Unit 18 Business Taxation.

    My question is really about whether it also applies to individuals - and is therefore covered by Personal Taxation, which I haven't done (But I need to know this specific item).
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    I believe rollover relief isn't available for investment properties only business assets so unless it is a holiday let there's no chance!
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    My bad i thought a sole trader was an induvidual but as i was told in college yesterday that roll over relief is not available to individuals - but also i had been told to treat business tax and individual tax totally different.

    But for sure id go with what Blue says she knows her stuff
  • MalMal New Member Registered Posts: 13
    I believe rollover relief isn't available for investment properties only business assets so unless it is a holiday let there's no chance!

    Aha, thanks. Unfortunately, this scenarion covers both types: the old property was a UK rented property but the funds were invested in an Italian holiday home that is also rented out for holidays.

    Sorry for not making it all clear at the beginning.
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    But you can't roll over funds from an investment property as it is not seen as a business asset, you could if it had been a FHL, but as the money is coming from an investment - no rollover relief is available.

    That FHL allowance will soon go anyway (06/04/10) so rollover relief won't be available at all.
  • Jon1Jon1 New Member Registered Posts: 11
    Thats a good point re the FHL, but I don't think the rollover crystallises if the asset ceases to be a business asset.

    Re the original post, there is a little quirk, if the property was compulsorily purchased - a form of rollover relief is available.

    Jon
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    While were on property a quick one say for instance someone has two properties and one is used by family members but dont pay rent can the owner of both properties collect tax allowence for one of the houses council tax?
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