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Where Taxpayers and Advisers Meet

Non Resident Crystallising a Capital Gain

gemco
Posts:1
Joined:Mon Nov 04, 2019 10:30 am
Non Resident Crystallising a Capital Gain

Postby gemco » Mon Nov 04, 2019 10:49 am

Hi, I am UK non resident and wish to return to the UK soon after 6 years abroad in the UAE. I own 100% of the shares in a UK property company that owns land in the UK. Planning improvements have significantly increased the value of this land. The changes made in April of this year to non residential CGT for non residents effectively means that if I can crystallise the gain before returning to the UK I will pay CGT on the increase in value since April 2019. However, I do not wish to sell the shares yet as I believe that there is further potential to increase the value of the land through further planning improvements, this might take up to 2 years and I want to return to the UK sooner than this.

How can I legitimately crystallise the gain - some ideas might be:

Transfer the shares to my adult children - if I did this I would want to create a loan agreement which ensures that payment is made to me at the transfer value at some point in the future. In this scenario is the gain crystallised on transfer or when the loan is paid off?

Transfer the shares to a parent NewCo in the UK - is this possible if I own 100% of the NewCo - or would I need to have no interest in the NewCo? Once the shares in the property company were eventually sold then I assume that the NewCo would pay corporation tax on the uplift in value?

Any thoughts on the above and/or any other suggestions are much appreciated.

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