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The Book-keepers Forum (UK) -> VAT, Payroll & Tax -> Capital Gains
Post Info TOPIC: Capital Gains
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Capital Gains
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If a client sells their share in a business, and re-invests the proceeds into a property, are they liable to pay capital gains tax?



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Thanks, Nadia.
RobRJBS


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If the property is used in their trade then the client could claim roll over relief and defer the gain. See the HMRC helpsheet http://www.hmrc.gov.uk/helpsheets/hs290.pdf



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Rob Director R & J Business Solutions (www.rjbusinesssolutions.co.uk) @RobRJBS
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Thanks Rob,

What if it is a residential property which is purchased with view to rent the property

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Thanks, Nadia.
RobRJBS


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Assuming it is just a residential let and not a holiday let then no relief is available, your client will have to pay the CGT on the sale of the business.

If you can act quickly your client may be able to sell part of the business this tax year and part after 5th April therefore getting 2 lots of the CGT annual exemption.



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Rob Director R & J Business Solutions (www.rjbusinesssolutions.co.uk) @RobRJBS
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