Entrepreneurs Relief on Rented Property

Entrepreneurs relief can reduce the effective rate of CGT down to 10% on disposals after 5 April 2008. Many individuals own property that is used by trading businesses. Under the previous taper relief regime this qualified for business asset taper relief. However the new Entrepreneurs relief provisions aren't as generous. Unless the property is used by your trading business it usually won't qualify. There are provisions for 'associated disposals' which allow relief where an asset such as a property is used by a partnership of which you're a partner or qualifying company (ie you own >5% of shares and are an employee/officer). However, there is no relief if the company isn't your company. So an unconnected company wouldn't qualify. In addition even if it was used by your company or partnership if it was let there would be a restriction in the amount of relief.