skip to navigationskip to main content
Accountants Cowley Holmes Chartered Accountants Excellence award
Business accountants SME tax Accountants in Bedfordshire Best accountants in Bedford

Tax Question time

Wednesday March 2017

Q. I note that entrepreneurs’ relief is given on the disposal of the whole or part of a business. I have a few clients who will soon be retiring or semi-retiring. With particular reference to the latter, what is meant by “part of a business”?


A. Case law relating to retirement relief draws a distinction between the disposal of a business or part of a business and the disposal of an asset used in the business.

For example, the owner of a taxi cab firm might downsize by selling part of his fleet of cars and a yard and garage used to store some of his vehicles while retaining the main business premises, the business name and the rest of the vehicles. It is likely a capital gain arising on the sale of the yard and garage will not qualify for ER.

On the other hand, if the business was carried out from two different geographical locations, each with their own premises, regular clientele, phone numbers, etc., then the sale of one part as a going concern while retaining and continuing to trade from the other part would probably be the disposal of part of the business.

Not all cases will necessarily be clear cut but with some careful planning it might be possible to minimise the possibility of losing a valuable relief.

Published form Croner Taxwise Limited


Social Sharing and Bookmarks:

Click here to see how easy it is to switch to Cowley Holmes

FREE Consultation

Worth £200 for Free Call us on
01234 355300 or click on the button below

Click Here

Fixed Fee Quote

Call us on
01234 355300 or click on the button below

Click Here

Sign up to our Tax &
Business Tips Newsletter

Ask an
Accountant a Question

Click Here

Become a Client

To find out 8 great reasons why you should get a quote.

Click Here

Claim your FREE Essential Guide to Understanding your accounts