Sale of House in Ltd Co

Sale of House in Ltd Co

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My client has a number of houses in a limited company; his year-end date is 31st March 2007. He sold one of the properties in February 2007 and invested all the profits in a new property in May 2007.

I am just completing the Accounts and CT600 to 31st March 2007 and somewhat confused on how to treat the gain and total re-investment. Does anybody have some basic advice?

Thanks

Mark Morris

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By kenmoody
04th Sep 2007 12:29

The basic advice is ...
... if the company trades in property the profit on sale is obviously a trading profit and the reinvestment is stock.

If the houses are let so that the company is in effect a property investment company then the indexed CG is liable to CT and there is no relief for the re-investment.

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