Rolling over CGT Liability into a Ltd Co

by Readers Question

8:41 AM, 13th April 2016
About 5 years ago

Rolling over CGT Liability into a Ltd Co

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Rolling over CGT Liability into a Ltd Co

Has any one has any experience of doing the following; selling the home that they live in and a rental property. Setting up a Ltd Co, putting the equity from the above two properties into the Ltd Co as directors loans and then getting the Ltd Co to purchase as semi commercial property (house not rented and garages and an office that are rented out). Living in the house but continue to rent out the garages and office. roll over

There is a large CGT liability on the rental property which I have never lived in. I have been told that I can roll the CGT liability over into the Ltd Co.  Is this possible/allowable and if so what steps do I need to take active this?



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Jon Pipllman

8:52 AM, 13th April 2016
About 5 years ago

Broadly speaking, it should be possible to defer the CGT arising from the sale of the rental if the proceeds are used to buy new business assets.

I am not 100% certain that the exact mechanism you describe is the optimum way of achieving your objective. On the limited information supplied, it is not possible to be certain.

The only sensible answer that can be given here is to say that you should seek properly qualified and insured professional advice for your own specific situation. An accountant would be a good place to start.

Neil Patterson

8:59 AM, 13th April 2016
About 5 years ago

Hi Martin,

This is extremely complicated due to mixed PPR and commercial usage. There are too many tax considerations and other variables for me personally to be able to answer this question. I agree with Jon and suggest professional advice from a fully qualified, regulated and insured accountant.

Please see the bottom of our tax page if you want to seek professional help >>

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