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markanstead
9th November 2005, 10:38
Hi everyone

I am a Mail on Sunday Property journalist and I have a very specific need for a case study to write about. Very happy to promote whatever you do in my write-up in return for your help.

I need someone selling a residential house that has been used as a base by a small business like a writer, artist, management consultant, computer consultant or any other kind of small business.

The owner can either have been running their own business there or letting it out to another business but the key is it can't be their main home (I need them to have a seperate principla residence).

The reason for my need is that if someone owns a second property and uses it as a base for a business (their own or rented to a business) they have 75% relief against capital gains tax when they sell, as opposed to only 40% if they let residentially. The tax savings are so great it can make more sense for a small business owner to move his business into a second home than let it our for rental income.

It cannot be a commercial property (proper offices) because I am looking for something still classed as residential use - writers, artists, management consultants, computer consultants or anyone operating a business that doesn't receive customers in their premises or take large deliveries can run it from a residential address without needing change of use. Typically it might be someone who began working from home and then moved out to a seperate premises. If anyone is in that position and is now selling they are my perfect case study.

Think laterally - if you know anyone in this position I need anything that might fit PLEASE!!!!! They will need to be willing to be interviewed and photographed.

Either reply here or email me below.

Cheers

Mark Anstead
anstead.writing@ntlworld.com

Jayne
9th November 2005, 10:46
Hi Mark,

Welcome to the forum. :D We are selling our bakery with a flat above (half of what you want)... :lol:

Can do you half an article :lol: Just Kidding.


Hope you find the person you are looking for.

Best Wishes

Jayne

James Smith
9th November 2005, 15:57
Erm I think the Mail on Sunday are about to get yet another very misinformed tax article!

"The tax savings are so great it can make more sense for a small business owner to move his business into a second home than let it our for rental income."

No, no and no again. You are comparing apples and pears by trying to justify the loss of real money (rental income) against potential tax savings in CGT of using the property for your business if capital values rise, vs working from home.

If this mythical individual was that concerned about the CGT you could get the same tax effect in a different way, but with rental income. The only time I can see it happening is because it makes practical sense from a business point of view, ie they need the room and they are already renting out an appropriate property.

Also I am no expert on planning permission, but I would be very suprised if you dont need SP2 on a property that was purely used as an office....

New article required IMO!

markanstead
9th November 2005, 16:09
Hi James

can I give you a quick call and run through it with you? Could lead to you being quoted and maybe getting some business referrals from it...

Mark

James Smith
9th November 2005, 16:15
I guess it would be quicker than taking calls from my clients the day after publication!