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Where Taxpayers and Advisers Meet

Liquidate company, BADR?

Benj789
Posts:4
Joined:Wed Jan 29, 2025 9:04 am
Liquidate company, BADR?

Postby Benj789 » Thu Jan 30, 2025 10:41 am

Re posting this in a different board to see if anyone can help:

My wife and I run a Ltd company that owns a commercial property, and we have decided to close the company and sell the property (now valued at £1m) at the same time.

I’m trying to figure out the most tax efficient way of doing this.

We bought the property for £500k in 2014, and have improved it a lot.

Does the sale of the property qualify for BADR, does anyone know?

Or do we have to pay corporation tax on the profits from the sale, then income tax to get the money out of the company? Eek that’s a lot of tax!

Any advice gratefully received, thank you folks :)

AGoodman
Posts:1931
Joined:Fri May 16, 2014 3:47 pm

Re: Liquidate company, BADR?

Postby AGoodman » Thu Jan 30, 2025 11:11 am

I don't believe a company can claim BADR, only individuals. So the company would pay CT on the sale. You might get CGT, rather than income tax, treatment if you wound up the company and might qualify for BADR on that gain if the company was trading, rather than just invested in the commercial property.


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