RRH

Bought some commercial property last year, and rent it to my old mans business.

I am just about to take over trading from him with a new limited company, which has been established for over ten years but has never traded.

I have, however, just been approached to sell it, but this *could* cause me a tax problem as there is a very substantial capital gain- in excess of maybe half a million.

Now I know that taper relief exists, but as I understand it I can oly get it if it's my business (or me as a majority shareholder) trading from the address.

How long would I have to trade the Limited company from the address before I could get relief?

I would usually ask my accountant, but this has just come out of the blue this morning and I can't get hold of him.

Thanks,
Simon.

magepaster

iTrader: (2)

Don`t know anything about taper relief but I know a guy at the zoo that knows about Tapir relief

RRH

nice

GreenMachine

Not sure on commercial property, but I would have thought it would qualify as a "business asset" (property has some funny rules though).

If so you get 50% relief on CGT if you have owned > 1 year and 75% relief if owned > 2 yrs. IE effective rate of tax of 20% after 1 year and 10% after 2.

HTH

Scooby-Doo

This may help

Scooby-Doo

http://www.inlandrevenue.gov.uk/pdfs/cgt1_6.htm

fast bloke

Isn't it 12.5% after 1 year?

Tim-H

Oooo thats going to buy you some sort of silly toy`s :-)
Have a good one
Tim.
ps after waiting approx 3 months for a sump, the "thing" may be running again next week :-)

GreenMachine

No.

The taper rate is applied to the gain then taxed at top rate

50% off means 50% taxable at 40% - effective rate 20%
75% off means 25% taxable at 40% - effective rate 10%

Like most tax - needlessly confusing and complicated