.png)
.png)
We have a close company client which for some years has owned an area of land that it rents to a husband and wife partnership. (The same husband and wife are the two shareholder/directors of the company, i.e. it is a close investment company.)
In April 2005, the company obtained planning permission and commenced to construct six residential houses on the site; and the rental income then ceased.
We have a close company client which for some years has owned an area of land that it rents to a husband and wife partnership. (The same husband and wife are the two shareholder/directors of the company i.e. it is a close investment company.)
In April 2005 the company obtained planning permission and commenced to construct six residential houses on the site; and the rental income then ceased.
When the houses are sold the company will cease to trade and all funds will be distributed as a return of capital. To ensure that the shares are classed as business assets for taper relief should the last house sale be deferred until after two years from the commencement of building works?
Any other points that Taxation readers consider to be relevant would be greatly appreciated.
Query T16 942 — Closer.
Reply by Thicket:
The straightforward answer to...
Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.
