Any CGT specialists?

Discussion in 'Accounts & Finance' started by Jaydee, Dec 11, 2007.

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  1. Jaydee

    Jaydee UKBF Enthusiast Free Member

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    Not sure if this is a question for here or for legal?

    I would like to buy two adjacent properties, that are currently owned by two separate individuals.

    They are really only of benefit to me if I get both.

    The owner of property A wants to sell in this tax year, as they have traded from the property and therefore will benefit from the 10% CGT.

    The owner of property B wants to sell after 5 April, so that they only pay CGT at 18% as they would otherwise get negligible taper.

    I cannot exchange on B in this tax year (when I have to complete on A) as that would crystallise the B vendor's CGT liability, unless as I understand it, the contract has "conditions precedent" that do not get met until next tax year.

    Does anybody have experience of how I can have a watertight agreement to buy B at the point that I buy A?

    Thanks in advance.
    Posted: Dec 11, 2007 By: Jaydee Member since: May 27, 2007
  2. Steve Roberts

    Steve Roberts UKBF Newcomer Free Member

    348 11
    The problem might solve itself. My spies in The City believe that The Chancellor will extend Taper Relief until after April 2008, possibly for another year and then change it to some sort of retirement relief. There is likely to be a statement from The Chancellor either just before or just after Christmas.

    Once the revised position has been announced then you and the vendor can do your sums.
    Posted: Dec 11, 2007 By: Steve Roberts Member since: Nov 6, 2005
  3. DFL

    DFL UKBF Newcomer Free Member

    1,026 334
    You would be better off sticking this on the legal forum.

    The CGT charge is triggered by the date of exchange so B will understandably not want to exchange in this tax year. The 'conditions precendent' that you mention can be a way aroundn this and relates to things like subject to planning permission etc, on which you will need the advice of a legal mind.
    Posted: Dec 12, 2007 By: DFL Member since: Aug 21, 2007
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