Capital Gains Tax Re-investing

acsacsacs
acsacsacs Registered Posts: 43 Regular contributor ⭐
edited June 18 in AAT member discussion
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.

Comments

  • slackda
    slackda Registered Posts: 456 Dedicated contributor 🦉
    Have quick look here, might be of some assistance

    http://www.hmrc.gov.uk/cgt/property/reliefs.htm
  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    Was the property a business asset, if so may only have to pay at 10%.
  • acsacsacs
    acsacsacs Registered Posts: 43 Regular contributor ⭐
    hi guys, thanks for the reponse.

    unfortunately it is a personal asset, a shop that he has rented out but is now selling.
  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    A shop that has been rented IS a business asset!
  • acsacsacs
    acsacsacs Registered Posts: 43 Regular contributor ⭐
    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
    acsacsacs Registered Posts: 43 Regular contributor ⭐
    Also Groundy can you elaborate on the 10%? Cheers
  • groundy
    groundy Registered Posts: 495 Dedicated contributor 🦉
    Business assets are taxed at 10% for CGT as long as the individuals life time gains do not exceed £1 Million.

Categories

Privacy Policy