Question: Our client sold a rental property for £150 000 in June 2012 and made a gain of £70 000. She would like to consider what options are available to her to mitigate the CGT liability arising on the disposal of the rental property. She has heard about EIS deferral relief and would like to know whether there are any other ways of saving CGT on the disposal.
Answer: Most CGT reliefs provide either a deferral of a tax liability or a reduction in the rate of tax applicable to a gain. The gain in question could be deferred where the whole of the gain is reinvested in qualifying shares in an EIS company.
However when the EIS shares are sold the gain on disposal of the rental property will come back into charge and will be taxed at the rates applicable at that later date. A loss on the disposal...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
Question: Our client sold a rental property for £150 000 in June 2012 and made a gain of £70 000. She would like to consider what options are available to her to mitigate the CGT liability arising on the disposal of the rental property. She has heard about EIS deferral relief and would like to know whether there are any other ways of saving CGT on the disposal.
Answer: Most CGT reliefs provide either a deferral of a tax liability or a reduction in the rate of tax applicable to a gain. The gain in question could be deferred where the whole of the gain is reinvested in qualifying shares in an EIS company.
However when the EIS shares are sold the gain on disposal of the rental property will come back into charge and will be taxed at the rates applicable at that later date. A loss on the disposal...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
