Shaz is with a live audience and takes the example of a property entrepreneur who has 2 HMO properties that they want to change, sell and be able to claim entrepreneurs’ relief
Using this example Shaz explains the different options that will mean that the investor can ultimately sell and claim entrepreneur's relief if they follow the advice to meet the criteria set by HMRC
KEY TAKEAWAYS
If it’s a trading business you can claim entrepreneurs’ relief, but not if it’s an investment business
Using your annual exemption and selling in different years will bring a small saving
Change an HMO property into serviced accommodation, run for 2 years to qualify and then claim entrepreneurs’ relief and only pay 10% tax
Entrepreneurs’ relief has a lifetime limit of a million pounds
Entrepreneurs’ relief is applicable if you are selling your business or ceasing to trade
SA property has to be commercially available for letting for 210 days every year and let for 105 days
If you have more than one property you can use averaging out
You can run as SA or move to serviced apartments/bed and breakfast for 2 years after which you can sell and claim entrepreneurs’ relief
BEST MOMENTS
‘If you are only paying 10% tax with entrepreneurs’ relief it’s a huge saving’
‘You have to offer more services than just a room’
‘Investment businesses can’t claim entrepreneurs' relief’
VALUABLE RESOURCES
shaz@aaa-accountants.co.uk
ABOUT THE HOST
Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.
Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultations he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.
He is a huge advocate of having multiple streams of
income. He has written a number of business books and regularly contributes articles to mainstream media outlets.
You can find Shaz on:
Facebook
YouTube.
