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
Replies (1)
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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.