7:36 AM, 1st March 2021, About 5 months ago 12
If Sunak changes CGT rules what is the best way to minimise CGT?
1. I purchased a rental property for £85k jointly a number of years ago in cash.
2. It is worth £125k now (£40K gain).
3. CGT allowance is £12,300, so joint is £24,600.
4. Can I sell the rental property for £85k + £24,600 = £109,600, which is below market value without issue to pay zero CGT and defer the rest to the company whenever it is sold? My Ltd company can pay me cash (as it has the reserves) and I understand there is currently no stamp duty.
5. Is there a tax implication I would fall foul of and more GGT or stamp duty would be charged?
6. Could my company sell it back on 7th March 2020 (me/wife)
on 10th April at £109,600?
7. Can I then sell it back to the company on 20th April for £125k (no stamp duty again, if Sunak extends).
6. Is there a better solution to take the CGT gain tax-free?
Yes, it is a snide and crafty thought. Is it legal?
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