Connection problems with Magic Mouse and handoff

I did a clean install of 10.10.3 and since then the Magic Mouse has had problems connecting. First it wouldn't pair. After a few reboots and repeated attempts I was able to pair the mouse with the rMBP. After waking from sleep it now no longer connects. I select the mouse in the Bluetooth menu and connect. Connection appears on the screen, but the mouse doesn't respond. After a few moments I get Connection Lost on the screen.

In addition to the mouse problems I have completely lost any hand off capability to or from the iPhone to the rMBP or back. It's like the Bluetooth connection between the devices is not working or is too weak to function.

It would be very much appreciated if any one has any suggestions on the cause or to a solution.

Thanks.