Readers' forum : Buy and sell

I have a client who is a director and shareholder of an investment company that buys property to rent out. He is thinking of forming another company with a view to buying a property renovating it and then selling it at a profit. He then plans to liquidate the company and pay 10% capital gains tax with a view to taking advantage of entrepreneurs’ relief.

My question is whether he would be entitled to this relief bearing in mind that he is involved with another property business.

Further would it make any difference if his company rented out commercial property and this new company renovated domestic properties?

Could readers assist?

Query 19 036 – Company Director.

Reply by Tania Donald  Francis Clark Tax Consultancy

The real question is whether this client will be caught by the targeted anti-avoidance rules (TAAR) in ITTOIA 2006...