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Given the recent changes in capital gains tax, ROBERT MAAS considers whether property should be in or out of a company
KEY POINTS
- Does the increased CGT rate affect property holding plans?
- Business property relief affected by rent paid.
- Scenarios with trading and property investment companies.
- What if proceeds are retained until company sale or liquidation?
- In most cases personal property ownership still seems beneficial.
The increase in the rate of capital gains tax to 28% reopens the difficult question of whether it makes sense to hold property or other a
ssets in a family company.
With an 18% rate of capital gains tax the answer was clear. It was normally sensible to keep the property outside the company. Provided no rent was charged the property still attracted entrepreneurs’ relief if the company was a trading company.
Tax at...
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