will a real estate limited company pay CGT?

is there a case where a real estate limited company will pay CGT when selling a property?

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Hello,

I've recently established a real estate limited company which both trade and invest in real estate properties.
will the tax be different if the company sells an investment property vs when it sells a property as a trade ? 
what are the differences between these two cases - tax wise?
will the company will pay corporation tax in both cases or will it pay CGT for the first option and corporation tax for the latter?

is there any case where a real estate limited company pays CGT?

thank you,
Itay

Replies (5)

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By johngroganjga
09th Mar 2019 05:11

In the UK , companies pay corporation tax both on their profits and on their capital gains. CGT is a tax for individuals only.

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Replying to johngroganjga:
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By CTA
09th Mar 2019 08:18

johngroganjga wrote:

In the UK , companies pay corporation tax both on their profits and on their capital gains. CGT is a tax for individuals only.

What tax applies to ATED-related gains, John?

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By Accountant A
09th Mar 2019 12:11

If you don't have an accountant for your company, you should appoint one as a matter of urgency. Your questions suggest that you don't have the necessary knowledge to correctly deal with your tax obligations.

Are you confident that you have you structured your operations optimally?

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By Business_World
07th Mar 2020 16:30

Hi,
I'm new to the Real Estate business.
I have an accounting question!

Does estate agent collection of tenants' rent is classed as their Sales Turnover or Cost of Sales in the P&L Account?
From my perspective, estate agent work on the commission basis. Lets say, ABC Estate Ltd collected £95,000 during the ARD into their limited company business a/c on behalf of the client's tenants. After deducting 5% commission of £4750 the agent transferred the rest £90,250 into their client (landlord) bank account imminently.
What sales figure do ABC Estate Ltd will include in their final accounts, is it £95000 Sales and £90,250 cost of sales or is it £4750 ???

Thanks in advance.

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Replying to Business_World:
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By SXGuy
07th Mar 2020 19:36

Your question was already answered in your initial thread.

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