Proceeds from sale of house

AMOCAMOC Just JoinedPosts: 1Registered
Can anyone give me their opinion. Have friend who is Director of business providing building services.

Also owns properties that he rents out and puts the rental into the limited co.

Now bought a house which was a disaster so sold at Auction .£112000 proceeds less private mortgage of £40000 - profit of £72000.

Does he pay tax privately or throught he Limited business??

Is there any tax relief other than capital gains he can direct the proceeds to without buying more assets?

Comments

  • MartinAlexMartinAlex Just Joined Posts: 3Registered
    Hello,

    Who pays the tax would depend on who paid for the properties. If they are in the companies name, the company would pay, or in Directors name, he/she would be liable.

    Unfortunatly if the building isnt the owners primary residence then the full wack would have to be paid in tax.

    I do understand that the Capital gains tax has changed recently to be a flat rate rather than taper relief etc. so this may be better than under the old system?? Depending on circumstances.

    M
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