The best strategy if you’re planning to sell some properties to pay down debt

The best strategy if you’re planning to sell some properties to pay down debt

15:15 PM, 30th April 2017, About 4 years ago 14

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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. 

However ….

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.

Landlord Tax Planning Presentation Download

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Comments

by TERRY BUTLER

12:59 PM, 7th May 2017, About 4 years ago

Reply to the comment left by "Mark Alexander" at "05/05/2017 - 06:05":

Hi Mark, I'm just doing the consultation process with yourselves,what does the base cost mean?

by Mark Alexander

13:12 PM, 7th May 2017, About 4 years ago

Reply to the comment left by "Terry Butler" at "07/05/2017 - 12:59":

Base cost is the purchase price plus any capital costs which have couldn't be treated as expenses for income tax purposes e.g. Stamp Duty and legal costs when you purchased the property, extensions to the property etc.
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by TERRY BUTLER

15:29 PM, 8th May 2017, About 4 years ago

Reply to the comment left by "Terry Butler" at "07/05/2017 - 12:59":

Hi Mark , thanks for answering question, could you also tell me
What purchase & other capital costs should include
Cheers Terry

by Mark Alexander

16:13 PM, 8th May 2017, About 4 years ago

Reply to the comment left by "Terry Butler" at "08/05/2017 - 15:29":

Hi Terry

If in doubt I suggest you consult your accountant.

Are you completing the Property118 tax planning spreadsheet by any chance?
.


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