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Where Taxpayers and Advisers Meet

Entrepreneurs' Relief on selling company running buy to let rental properties?

Bizman
Posts: 20
Joined: Sat Oct 21, 2017 9:18 pm

Entrepreneurs' Relief on selling company running buy to let rental properties?

Postby Bizman » Thu Aug 08, 2019 1:33 pm

As far as I'm aware, Entrepreneurs' Relief to reduce CGT doesn't apply to a run-of-the-mill limited company that buys and rents out buy to let properties (not holiday lets etc.) without significant development work. We haven't developed the properties other than relatively minor works like new laminate flooring, DIY repairs etc.

However, every chartered accountant or tax expert I go to see for initial consultations keenly suggests it as an option as we're looking to sell our company.

Therefore, I was wondering if there is any way Entrepreneurs' Relief could be used to pay CGT at the lower rate for a company running a portfolio of UK residential rental properties please?

If it did, it'd save us a huge amount of CGT.

Thank you.

jerome.lane
Posts: 34
Joined: Mon Aug 12, 2019 8:41 am
Location: Camberley, Surrey
Contact:

Re: Entrepreneurs' Relief on selling company running buy to let rental properties?

Postby jerome.lane » Mon Aug 12, 2019 9:36 am

ER won't apply to a property investment company such as the one you describe. The chances are that the company may have to sell its properties as buyers are more likely to want the assets rather than the company. You may then want to seek advice on the extraction of those proceeds from the company in the most tax efficient manner.
Jerome Lane
Tax Advisor
jerome.lane@stewartco.co.uk
Stewart&Co.
Chartered Accountants
Telephone: 01276 61203


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