A. Case law relating to retirement relief draws a distinction between the disposal of a business or part of a business and the disposal of an asset used in the business.
For example, the owner of a taxi cab firm might downsize by selling part of his fleet of cars and a yard and garage used to store some of his vehicles while retaining the main business premises, the business name and the rest of the vehicles. It is likely a capital gain arising on the sale of the yard and garage will not qualify for ER.
On the other hand, if the business was carried out from two different geographical locations, each with their own premises, regular clientele, phone numbers, etc., then the sale of one part as a going concern while retaining and continuing to trade from the other part would probably be the disposal of part of the business.
Not all cases will necessarily be clear cut but with some careful planning it might be possible to minimise the possibility of losing a valuable relief.
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