How to create a captial gain from disposing of a business

[sndrod2]

I have a personal capital gains loss of £7k from a unit trust. I also have a company that I used as a vehicele to get paid for a consulting project I did. I have not drawn a salary from this company which has £13k of cash sitting in it.

The question is, how do I dispose of this company in this tax year to create a captial gain that i can offset against the capital loss?

[ian.wright@beechams.]

You can liquidate your company through an Inland Revenue Extra Statutory Concession ESC C16.

In this the IR agree a dissolution as capital as long as you agree to certain criteria.

It may be worth doing this in the year following the loss as you would only need to offset enough carried forward losses to reduce the gain to the annual exemption.

Taper relief on the gain is realy subject to the activities of the business and may just fall under the investment rates rather than business rates which are more favourable.