UK Landlord Forum / Life

We are in the process of selling a property which is a shop on tbe ground floor and a 1 bed flat on the first floor.  We anticipate that a Capital Gain will arise (report & pay 60 days -'real time').

The property is thus 'mixed use'and has been advertised for sale by an agent as a commercial sale.


We have always rented both parts out to a 3rd party.


We wish to pay the appropriate amount of tax due.

Is there scope to claim that half the property is commercial and a CGT rate of 10% applies whilst CGT at 18% applies on the flat?

Yes, you can allocate the gain between the two uses of the property and report the tax accordingly. You can split the gain unevenly if that's appropriate.
If you ever lived in it, you should probably consider the effect of any PPR on the flat.

Quote from: jpkeates on October 01, 2024, 02:10:15 PMIf you ever lived in it, you should probably consider the effect of any PPR on the flat.

Slip of the fingers: PPR
PRR Private Residence Relief

Quote from: HandyMan on October 01, 2024, 03:44:19 PMSlip of the fingers: PPR
PRR Private Residence Relief

PPR = Principal Private Residence

... so I suppose it should really be PPRR. 

Thanks, good spot.