McDonnell’s distorted and dangerous version of Right to Buy9:01 AM, 5th September 2019
About 2 weeks ago 35
Normally, if you sell your properties you will realise a capital gain, which is the difference between the purchase price and the sale price. This gain is then added to your income and if you’re a higher rate tax-payer you will pay CGT at a rate of 28% of the gain.
Did you know that if you sell ALL of your properties to your own limited company a form of tax relief exists to ‘wash out’ those gains?
The value of the properties for calculating tax on capital appreciation then becomes the value at which you sold your properties to your company. Therefore, if you then sell them on to a third party for the same price there is no tax to pay. This means you could pay down your mortgages without having to pay the CGT on your profits.
There are, of course, qualifying criteria but this is explained in our PowerPoint presentation, which can be purchased for just £20 by completing the form below.
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