Transfer of Fixed Assets to Director
I have a dirctor who's Company owns a property and he would like to pay himself the property as a dividend (say the value of £500,00) to make things quantative.
He would like to know whether he will incur CGT or just the payment at the dividend rate of tax - also he woud like to know how this will affect the business in regards to Corp. Tax.
Am I correct in saying (as this is a very practice based question in my mind) that the asset would need to be 'purchased' at market value and therefore the value 'paid' (£500,000) would be subject to standard tax from the Companies perspective AND his personal tax computations would then reflect a liability of CGT based on the fact no money has actually exchanged hands and he was 'paying' himself this asset as a dividend.
Your help and assistance with a reasonable explanation would be greatly appreciated as I have come a bit unstuck with my reasoning for the treatment of the implication either way.
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