I would appreciate some friendly guidance in this area - feel free to DM me :)
My client is part of an enfranchisement of the freehold of a block of flats using two companies:
- Company 1 - are for those participating in the enfranchisement, so have contributed finanially to the freehold purchase (via a loan to the company) and own a share in the company.
- Company 2 - are for those not participating financially. A loan company has instead purchased those particular freeholds. The directors and shareholders are connected to the loan company.
At the moment I am dealing with Company 2. During the year the company has sold leases to some of the flats, and more follow in the next year. Am I correct in my understanding that the gains arising (sales received - leasehold base cost) are chargeable gains for corporaiton tax?
I'm a classic overthinker and have been going around in cirlces, so I'd appreciated any pointers on areas I may have overlooked or need further considearation. Also are any paricualr notes required for the accounts?
Thank you for your help and I encourage constructive comments.