Hello, if you have any questions or need further clarification after reading my answer please let me know.
Thank you for your question...
Please advise if the property is registered in the company's name and shown as a fixed asset.
It is registered in my name in France but was transferred into the company and is shown as a fixed asset on the balance sheet - current depreciated value £72806
Martin, thank you for your reply.
As it is a company asset, any gain from sale of it would attract capital gains tax at corporation tax rate of 20%.
If you have not claimed any capital allowance on this asset, depreciation is normally disallowed, the gain for tax purposes will be the difference between the cost/valuation price at the time of introduction and the eventual sale price.
The company would be able to claim credit for foreign tax suffered if any.
If you need more information please let me know before you rate my service.
I hope this is helpful and answers your question. I am available for any follow up questions you may have, and you can use the reply button to post your follow up questions to the page. If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.
Thanks. So for final clarity I would be liable for the difference between sale price converted into sterling at the prevailing rate and the book value of 72806. In round terms a gain of £39k or so and a tax liability of 20% on that?
Martin, thank you for your reply..
Your tax liability at CT rate of 20% will be on tax accounts gain and not financial accounts gain. You would take tax written down value as your cost base and selling price converted into Pounds Sterling at prevailing rate. As I mentioned earlier, depreciation would have been added back for tax accounts purposes and you would have capital allowance to replace the depreciation. Please ensure your written down values are the same.
I notice you have viewed my latest response to your original question on Capital gains tax on sale of company property (JACUSTOMER-cu07wi7e- Last Viewed on 7/18/2013 at 11:58 AM).
Just checking to see if you have any issues relating to your question that I may not have addressed. Please let me know if I can be of further assistance.
If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get paid for it.
Martin, thank you for accepting my answer.
Your bonus is greatly appreciated.