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Where Taxpayers and Advisers Meet

Tax on shareholders of a company with commercial forestry

Stevf
Posts: 3
Joined: Sun Mar 25, 2018 7:36 pm

Tax on shareholders of a company with commercial forestry

Postby Stevf » Fri Nov 29, 2019 7:01 pm

Im sorry if the answer is basic and obvious, but can someone please tell me....
My wife and I are 100% shareholders ( 50 % each) of a limited company. The company just has cash in it.
If we invest all the money in the company into commercial forrestry that then continues for 2 years minimum to the time of bpr, if we then sell the forest and liquidate the company, would we recieve 100% of the sale price as individuals? Or would we have to pay one of either capital gains or Entrepeneurs relief?
Im just trying to work out whether its worth the time and effort going through the above or just liquidate now and pay cap gains on it to get us out of the company.
Thanks for your help / time.

AGoodman
Posts: 881
Joined: Fri May 16, 2014 3:47 pm

Re: Tax on shareholders of a company with commercial forestry

Postby AGoodman » Mon Dec 02, 2019 5:44 pm

Doesn't look like ER applies.

Default position is therefore CGT on the gain over the base cost of the shares.

Could be income tax if you are caught by the phoenixing rules (you have not mentioned where the cash came from).

Stevf
Posts: 3
Joined: Sun Mar 25, 2018 7:36 pm

Re: Tax on shareholders of a company with commercial forestry

Postby Stevf » Tue Dec 03, 2019 10:02 am

Thank you for the reply. Appreciated.


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