Reducing tax liability

[uresh.naik@capco.com]

I hear that you can reduce your CGT liability by keeping a portfolio of properties under a limited company, hence paying coporation tax of 19%. Is this true and would there be any other taxes to pay i.e NI??

[Neale]

You need also to consider, in particular the costs, work involved in filing annual returns, and Capital Gains consequences, since under normal circumstances these might be subject to Corporation tax within the company, then further charge to higher rate income tax 22.5% on withdrawal from the company.

tax@coules.com