My question is: Someone sells a B&B - 50%private use,50%business use. Paid 300k for it and sells it for 600k. For the first 50% they can claim Private Residence Relief? They have to pay CGT on the business 50% (300k so 150k)? Does this qualify for Letting Relief? If so it should be 40k relief? They made more than 40k on letting and claim more than 40k private res.relief so the lowest amount is 40k? If so allowed they left with 110k they have to pay what rate CGT - is it 18% of this? So would they have to pay all together 19800 tax on the sales?
What I don't really know does a B&B qualify for letting relief or it is not classified as residential letting...and if it is not, would that mean the yhave to pay 18(?)% on the full 150k?
take a look at example 8, which although a guest house I am assuming is same as b & b. In your scenario it would look like the £150k gain on the business would be limited to 50% (the personal use part) so it goes down by the lower of that figure (£75k) or £40k, ie restricted to £40k. So as you say £110k liable, less Annual Allowance of £10,100 per owner (assumes business is not a limited company), but by applying Entrpreneurs Relief this would be taxed at 10%.
I would be inclined to get a second opinion though!
