Hi,
The FHL component constitutes residential property and this component would be subject to the online 60 day reporting rules: You can see guidance here:
Tax when you sell property
Report and pay your Capital Gains Tax
Guidance on the mixed use of properties can be seen here:
CG-APP18-260 - Part 2 - Submitting returns through the CGT on UK Property Account: Complex and Miscellaneous Scenarios
Guidance on Business Asset Disposal Relief (BADR) and if eligibility criteria are met can be seen below:
Business Asset Disposal Relief
CG63950P - Capital Gains Manual: Reliefs: Business Asset Disposal Relief
CG64015 - BADR - “disposal of part of a business”: meaning
Assuming you are meeting the BADR qualifying criteria, there are no restrictions to BADR entitlement and normally apply where the assets use has changed assuming there is a business carried on as a sole trader, business or a partnership, or a scenario involving a life tenant trust.
Mixed use properties with part being used for the purposes of the FHL business and part for another purpose, BADR applies to ‘assets used for the purposes of a business carried on by the individual or a partnership of which the individual is a member’ and this is only restricted to the extent that there are excluded assets that are held as investments (TCGA 1992, s. 169L). For further guidance see examples here:
CG64145 - Business Asset Disposal Relief - calculation - restrictions on relief for “associated disposals”
Thank you.
