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Where Taxpayers and Advisers Meet

Any CGT reliefs available?

andy4851
Posts: 80
Joined: Wed Aug 06, 2008 3:40 pm

Any CGT reliefs available?

Postby andy4851 » Thu Mar 05, 2020 3:07 pm

Hi

My research would not indicate there is much we can do on the following but please tell me otherwise if I am mistaken.

Husband owns the one share in limited company which has the trade of a take away shop in it.
Company paid £6,000 for the assets of a previous company which went under.
Company formed in Feb 19 and traded the month after.

Sale is looking likely at £275k - £120k fixtures/fittings/eqpt £155k business goodwill.

Plans are to buy two shop units with the proceeds from selling the business, either as the trade or as the shares of the company.

From my understanding:

1) Entrepreneurs Relief is out as the shares have not been held for 2 years
2) Business Asset Relief not viable if selling the shares in the company;
3) Could you get BAR on the asset element of the sale for the equipment as partial relief?
4) Can I add my wife and kids on to the company ownership so we each get the annual allowance and also more of the gain would be covered in the basic rate band?

Thank you ever so much for any help

Andy

billypiper
Posts: 27
Joined: Wed Aug 06, 2008 4:10 pm

Re: Any CGT reliefs available?

Postby billypiper » Thu Mar 05, 2020 3:19 pm

Someones done very well to do that in 1 year. There must be a reason

The issue of splitting the gain within the family is in my opinion too aggressive and only for tax purposes. Although putting the share into joint names with the spouse is ok.



No roll over relief if selling shares

andy4851
Posts: 80
Joined: Wed Aug 06, 2008 3:40 pm

Re: Any CGT reliefs available?

Postby andy4851 » Thu Mar 05, 2020 3:36 pm

Thanks very much for the reply.

If we sold the trade from the company but not the shares, could we do a partial roll over taking the disposal as £120k assets and £155k goodwill and getting rollover on the asset portion of the disposal?

I could be confusing the issue somewhat though.

Thanks again

billypiper
Posts: 27
Joined: Wed Aug 06, 2008 4:10 pm

Re: Any CGT reliefs available?

Postby billypiper » Thu Mar 05, 2020 5:35 pm

You need to acquire something to roll it over into

The shops wont qualify

bd6759
Posts: 3168
Joined: Sat Feb 01, 2014 3:26 pm

Re: Any CGT reliefs available?

Postby bd6759 » Sat Mar 07, 2020 3:53 pm

You need to acquire something to roll it over into

The shops wont qualify
The trade, assets and goodwill belong to the company, not the shareholders. The shareholders will not have made a disposal liable to CGT.


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