I have a client who owns a garden centre personally and he has let this to his own personal trading company.
He intends to sell the garden centre and also his shares in the trading company, at the same time, and would like to purchase a fishery using most of the proceeds. We are considering whether rollover relief under s.152 TCGA 92 is available.
The HMRC manuals and Simon's Taxes make it clear the old and the new asset should be used in the same personal trading company.
The legislation at s.157 TCGA (personal company) is unclear on the situation although I have to say it does not look like it intends to dissalow relief in our circumstance.
This is impossible if you have, in our case, sold the personal trading company shares. We could set up a new personal trading company but the strict interpretation seams to be that rollover relief is not available. Also, what if he runs the fishery as a sole trader?
Do readers have any experience with making claims in such circumstances? It seams unfair that you cannot make a claim.
Many thanks in anticipation of your replies.
- Taxfiler - SA100 - More efficient? 596 5
- See you all on the other side 674 6
- 12Pay 437 2
- dividends 587 2
- R&D 305 1
- Quarterly Reporting - The Logistics 1,164 17
- Auto enrolment contribution rates 432 3
- How long are you waiting for appeal reply 392 4
- Borrowing money to loan to company 361 1
- Mother as Guarantor for Son's mortgage 536 5
- Seeking a tax case 634 9
- When do we qualify for state pension? 493 4
- Companies house strike off 526 3
- Tax treatment of alterations to property 413 2
- Moving to the cloud 731 9
- Iris open space/doc exchange for SATRs 211 2
- How much to charge for payroll? 886 16
- Unincorporated charity transfer to CIO 204 4
- BTC vs Digita 1,087 29
- Has anyone tried calling HMRC to get tax on dividends put in code? 484 4
- HMRC Joint Filing 556
- Capital Contribution towards a company car 419
- Capital Reduction & Impact on EIS Shares 369
- IRIS and FRS 102 352
- Capitalising Finance Lease 319
- USA help 314
- National Minimum Wage issue on Directors joining a Workplace Pension 295
- Dormant company accounts under FRS 102 286
- Marginal rates of tax 275
- Capital gains on rental property 262