How to Start & Run a B&B BandBED2eBook-1 | Page 107

letting rooms, your property’s value may well be higher as a private home on the property market. The UK has some of the world’s highest property values, and historic features, views or a lovely setting may make less difference to what you can charge B&B guests than it does to its property value as a house. Capital Gains Tax (GCT) This hugely complex subject is outside the remit of this book, and is one where you will need individual professional advice. We do want to flag up the possibility, however, that there are circumstances in which the tax man (HMRC) may apply CGT on the sale of your property, even if it is primarily your family home. If your B&B is also your family home (or as been at some time during your ownership), you will be entitled to exemption from CGT for any gain arising from the disposal of your home (Principal Private Residence Relief). However the exemption does not cover any part of the gain relating to part of the property used exclusively for “business” (eg B&B) purposes. This is a changing area, as the new (2010) Coalition Government made changes to CGT in its first budget. The Bed & Breakfast Association provided its members with a detailed analysis of CGT on B&Bs, and will update it as the rules and guidelines become clearer. In the meantime, be aware of the possibility, and get professional advice based on your own individual business and personal financial circumstances. Further Research and Reading www.HowtoRunaBandB.com This is the website run by the authors of this book, which besides selling the book also has updates, further links and resources. The Bed & Breakfast Association The Bed & Breakfast Association is the UK trade association for B&B and guest house owners. Its Chief Executive is David Weston, one of the authors of this book. In July 2010 the Bed & Breakfast Association won the official accolade (through the Government/CBI Trade Association Forum) of being judged the best trade association in Britain at representing its members and sector, out of 313 trade associations across all areas of activity. The BBA has the following objects: 1) To represent the interests of “bed & breakfast” owners in the UK, and to campaign on behalf of those interests (for example, to Government and regulatory bodies);