Capital Gains Tax Re-investing
acsacsacs
Registered Posts: 43 Regular contributor ⭐
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.
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.
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Comments
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Was the property a business asset, if so may only have to pay at 10%.0
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hi guys, thanks for the reponse.
unfortunately it is a personal asset, a shop that he has rented out but is now selling.0 -
A shop that has been rented IS a business asset!0
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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.0 -
Also Groundy can you elaborate on the 10%? Cheers0
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Business assets are taxed at 10% for CGT as long as the individuals life time gains do not exceed £1 Million.0
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