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Where Taxpayers and Advisers Meet

De enveloping property

Joined:Fri Nov 08, 2019 8:07 am
De enveloping property

Postby Raygor » Fri Nov 08, 2019 8:20 am

I am non resident in the UK for over 10 years.
I purchased 2 apartments (value £300 K each) in 2011 in a BVI company.
All returns for the company were submitted an up to date to Apr 2018.
In Sep 2018 I 'deneveloped' the properties,by transferring them into my own name and wound up the company.
There was (per advice) no stamp duty payable on the distribution.
Going forward I will include the income and gain from the properties on my personal tax return.

My Question is
1)whether on the final tax return for the company there is a CGT liability.
2)The tax form asks did you sell any properties ( I didnt they were distributed to settle the outstanding loan) can I say no?
3)do I have a liability under Section 9 dealing with "disposals of UK resi property subject to non resident CGT"?

Joined:Wed Feb 08, 2017 2:33 pm

Re: De enveloping property

Postby AnthonyR » Fri Nov 08, 2019 10:49 am

It's a complex area and was made far more complex in April 2019, but it seems that you wound up the company prior to these changes.

It sounds like you got some advice in the process and as you say a correctly structured distribution on winding up can result in no SDLT charge (assuming no mortgages or debt other than your loan account). I assume that ATED was either reported or not relevant?

In terms of your other questions, I would suggest that you probably need to take some formal advice as the answers will depend on the ATED position and it's likely that the company will either be subject to ATED CGT or Non-Resident CGT on the disposals of the properties to you.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP

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