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Marc

CGT v Corporation Tax

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Hi, quick tax question for the people far more knowledgeable than me!

i understand that an individual when selling a BTL property will pay capital gains tax - on the gain (excluding my allowance). i am a higher rate tax payer, so i understand this would be at 28%.

if i hold a property within a ltd company and then sell it, i pay corporation tax - can someone tell me what the rates (%) are and is there such a thing as an allowance, like there is with CGT??

Many Thanks

Marc

 

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Thanks Debbie, so as an example, if i have sell a property and my gain is £22000 and i hold this in my own name, i will get my CGT allowance of £12,000 and pay 28% on the remaining £10,000 i.e. £2,800.

If i hold this property in a Ltd Company, and my gain is £22,000 -  i would pay corporation Tax (soon to be 17%) on the £28,000 i.e. £3,740.00

Purely from a 'sale' and 'tax' perspective have i missed anything?

 

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