Capital Gains Tax Re-investing

acsacsacs

Ok, I have a client who has owned a property for a number of years now and is looking to now sell.

The property is worth say £200,000 and cost him about £90,000 thus giving a £110,000 profit. Half for him and half for his business partner (as joint owned).

This gives a capital gain of £55,000 although his allowance brings it down to roughly £45,000. Is there any way the client could re-invest this money to avoid paying 18% CGT?

I read somewhere that you could re-invest some money for shares in an unquoted company? But not sure about this?

Any help would be greatly appreciated.

Thanks.

slackda

Have quick look here, might be of some assistance

http://www.hmrc.gov.uk/cgt/property/reliefs.htm

groundy

Was the property a business asset, if so may only have to pay at 10%.

acsacsacs

hi guys, thanks for the reponse.

unfortunately it is a personal asset, a shop that he has rented out but is now selling.

groundy

A shop that has been rented IS a business asset!

acsacsacs

Sorry I meant not an asset in his limited company. As per the help sheet 290 I can see it is determined as a business asset.

I will have to have a read through business asset roll-over relief.

Thanks for everyone's responses.

acsacsacs

Also Groundy can you elaborate on the 10%? Cheers

groundy

Business assets are taxed at 10% for CGT as long as the individuals life time gains do not exceed £1 Million.