Entrepreneurs Relief for Property Developers

The new Entrepreneurs Relief applies for the purposes of capital gains tax - not income tax. Therefore a property developer that was conducting a trade would not be able to argue that a disposal of a property would qualify for Entrepreneurs relief (as this would be subject to income tax). Entrepreneurs relief would in any case only usually be applicable to a sole trader where they sold an interest in their business and not just an individual asset. What if a property developer sold their entire stock of properties would this then qualify? Well no it wouldn't as this would still be subject to income tax. If a property developer was to sell their entire business which also included some properties this could in theory qualify for Entrepreneurs relief. This would essentially be the same as a bookshop owner selling his bookshop (with the properties being stock just as books are for a bookshop). It's essential though that a business is being sold and not just a collection of assets. So you'd need to have other assets as well such as business goodwill. If this applied though the 10% CGT rate could be available on the other assets. If you're a property investor as opposed to a property developer although you would be subject to capital gains tax and not income tax you still wouldn't qualify. In order to qualify for Entrepreneurs relief you need to sell an interest in a business. By selling an investment property you would not be selling an interest in a business and would therefore be subject to the full 18% rate of CGT without Entrepreneurs relief.