Property in a Business

Scuff1961

I am looking to retire in the next 3 years and own the building that the business is located. Is there anything I should do to avoid paying Capital Gains or not as much Capital Gain

Marcon

Scuff1961 said:

I am looking to retire in the next 3 years and own the building that the business is located. Is there anything I should do to avoid paying Capital Gains or not as much Capital Gain

Best person to talk to is your accountant - there's no information in your post which would enable anyone to answer accurately (nor is anyone here insured to give advice to you, and that might be important!).

MyRealNameToo

Scuff1961 said:

I am looking to retire in the next 3 years and own the building that the business is located. Is there anything I should do to avoid paying Capital Gains or not as much Capital Gain

So you own the business and the building separately? Or you own the business which owns the building? 

What's happening to the business when you retire?

Easiest way to pay less CGT is to sell the building for less so you've made less of a gain to pay tax on or dont sell it and use the rental income instead. 

Scuff1961

I own the business which owns the building

MyRealNameToo

Scuff1961 said:

I own the business which owns the building

Are you selling the business? 

Grumpy_chap

Scuff1961 said:

I own the business which owns the building

There will not be any CGT when the business sells the building.  Proceeds from the sale of the building will go to the profit and loss account.  Corporation tax will be payable.

poseidon1

Scuff1961 said:

I own the business which owns the building

For the sake of clarity is the business a limited company in which case note Grumpy_chap's post.

If you are trading as a limited company with property held at corporate level, you really should be getting pre retirement business exit  and corporate liquidation planning advice from a specialist tax accountant. 

This planning maybe beyond your present accountant's competency if they have not been especially proactive in the past.

mlz1413

So the company I bought into rents the building from the previous owners.   The had 2 separate limited companies,  one ran the business and paid rent for the premises.  The other owned the building and still does, so it still gets rent every month.

The owners did this 10 years ago with specialist advise. 

I agree with others you really need to pay a specialist so you can fully discuss your situation.