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Hi, our client (the tenant) has received a capital sum for surrendering the lease to the landlord. No premium was paid on acquiring the lease, so there is no base cost for CGT purposes. However, I think my client may be able to claim entrepreneur relief for the sale of business assets. She received the sum in 2018 and she still occupies the building (and is continuing to trade) but under a new license agreement. The licence agreement only lasts for an additional 4 years during which time either party can exit the agreement. Once my client exits the current license agreement she will be paid an additional capital sum. She has said that after exiting the license agreement, she does not intend on continuing the business from a different premises and will cease trading. Can she claim entrepreneur relief on the sale of the lease even if she is continuing to trade after the disposal?

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Asked on 26 November 2018 10:31 am