Anybody own a property within a company?
06 February 2010, 12:41 PM
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Scooby Regular
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Anybody own a property within a company?
Hello.
Does anybody here own a property within a company? If so can you answer the following?
If the property is bought for say £100k and generates £10k income yearly (after interest payments) and you keep the company for 10 years. When you wind the company down I've been told the assets can be distributed and the gain treated as capital gains which for companies is 10%
You will have had to pay 21% tax on the net income of the property every year and then 10% CGT at the end on this income.
The property when winding the company down is now worth £200k. Do you then pay 10% CGT on the £100k capital uplift? Or is there some more to pay as well.
I will ask my accountant on Monday, but would quite like the answer over the weekend.
Thanks
Does anybody here own a property within a company? If so can you answer the following?
If the property is bought for say £100k and generates £10k income yearly (after interest payments) and you keep the company for 10 years. When you wind the company down I've been told the assets can be distributed and the gain treated as capital gains which for companies is 10%
You will have had to pay 21% tax on the net income of the property every year and then 10% CGT at the end on this income.
The property when winding the company down is now worth £200k. Do you then pay 10% CGT on the £100k capital uplift? Or is there some more to pay as well.
I will ask my accountant on Monday, but would quite like the answer over the weekend.
Thanks
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