Can I Get My 10 Million Back Tax Free?
I have 100 properties in my sole name, worth about 10m with 2.4m debt. If I transferred it all into a company, can I assume that even if I pay 18% Capital Gains Tax on the transfer, I can receive all of my 10m, tax free, out of the company after paying only 20% tax on rentals i.e. 600k rental income, 120k tax, leaving 480k in the company to draw tax free year on year until I get my 10m back?
Arthur Weller Replies:
This means an annual CT bill for the company of £152.25K (not £120K). c) Speak to a tax adviser about the possibility of applying incorporation relief to the transfer of your 'property business'' into the company to mitigate the present liability to capital gains tax.
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