Corporation Tax on a property transferred out of a Limited Company

[Jaggers]

A property was held as an investment by a Limited Company and then sold to an individual. The sale required the individual to make a cash payment to the company (180k) and also take on the associated mortgage debt (200k) i.e. total consideration of around 380k.

How should the company (with turnover of
many thanks,
John

[Neale]

The Taxable Consideration will be £380K less certain costs under normal circumstances (assuming this is also the current market value). The tax on the gain depends upon the amount and timing of the cost of the property together with the possibility of other deductable costs.

neale@coules.com