Second home CGT and stamp duty

darleydame

Thank you @poseidon1
Sensible advice which I can understand and a conclusion we were coming around to.
I have sent a query through the HMRC Community forum about this roll over question and have found a signed form which was filled and sent along with our self assessments in 2014 which states sale of asset as a holiday home and purchase of next asset as a rental property and the amount libel for capital gains which was invested but doubt the HMRC will says makes no difference and its ip to us not them to pay the correct tax.
 Would help if they were more clear about things though as to me owning a rental property is a business asset which we declare for tax.
 So it's really a question of let sleeping dogs or in this case the taxman, although we are prepared to pay the CGT we made the mistake over.

YellowCarBlueCar

darleydame said:

...
 Would help if they were more clear about things though as to me owning a rental property is a business asset which we declare for tax.
...

To most of us, yes.  But to HMRC a holiday let was a business, and a rental property is an investment.

I say 'was' as the different tax treatment for FHLs ended at the end of the last tax year, so they no longer qualify for rollover or BADR (which replaced Entrepreneur's relief).

TheGreenFrog

Even if roll over relief was not available you might have been eligible for business assets disposal relief.  I don't know whether it can be claimed so far in retrospect though.

Nomunnofun1

TheGreenFrog said:

Even if roll over relief was not available you might have been eligible for business assets disposal relief.  I don't know whether it can be claimed so far in retrospect though.

Deadline is 12 months following the filing date deadline of the relevant return. 

If 2024/25, for example, 31st January 2027. 

mybestattempt

Nomunnofun1 said:

TheGreenFrog said:

Even if roll over relief was not available you might have been eligible for business assets disposal relief.  I don't know whether it can be claimed so far in retrospect though.

Deadline is 12 months following the filing date deadline of the relevant return. 

If 2024/25, for example, 31st January 2027. 

If HMRC made a discovery assessment to recover the tax lost because of the incorrect claim for Rollover Relief then the time limit to make a consequential claim for Entrepreneur's Relief is extended by S36(3) TMA1970:

https://www.gov.uk/hmrc-internal-manuals/self-assessment-claims-manual/sacm9005

That said, given the tax loss seems to be for 2013/14, a discovery assessment for that year could only be made if HMRC could show the loss of tax was because the incorrect return was made deliberately.

(The time limit for making a discovery assessment was by 5 April 2020 if the incorrect return was made carelessly.)

Yorkie1

OP, I noticed that you mentioned that your husband has dementia. Aside from the points made in this thread, if you did go ahead with any changes, you would need to be able to demonstrate that your husband had capacity to understand the pros and cons of any decision, and to make that decision, at the point the decision was made.

It may be that this is not (yet) an issue, but something to be aware of for the future, perhaps.

darleydame

Yorkie1 said:

OP, I noticed that you mentioned that your husband has dementia. Aside from the points made in this thread, if you did go ahead with any changes, you would need to be able to demonstrate that your husband had capacity to understand the pros and cons of any decision, and to make that decision, at the point the decision was made.

It may be that this is not (yet) an issue, but something to be aware of for the future, perhaps.

Yes this is why we are sorting out a new will now while its early days for him as we only had the one house when we did the first.!
Also did Enduring Power of Attorney in 2001 or 2002 but the deedbank have no record of them on file nor is the company that did them in business, nor can we show any proof we paid at this late stage!
The deedbank have asked for all the documents to be sent over so we shall see, but on a brighter note changing our wills is free.

So if anyone reads this thread in the future I urge you to sort out these things out as soon as possible so gifting to your children early on by putting a property in their names or as joint tenants well before you need to think about the impact of ill health on your finances.