Hold on? Is there really no CGT on company properties?
Correct! There is no CGT to pay when a company sells a property. But…
It’s always the news that comes after the “but” isn’t it. I like you but… Your hair is nice but…
So companies pay corporation tax. You probably knew that. They pay it on profits made via income AND capital gains. So although there is no CGT there is CT! What’s strange is this was one of the stated reasons why you absolutely must use a company to buy all of your properties. Who was the advice from? You guessed it! A property mentor on Instagram.
Now I know that I shouldn’t care but if this was in other sectors they would be liable to legal charges and struck off for saying things like this. It’s the worst of click bait in that it purposely uses a false hook to get people to follow them more than likely with a plan to upsell a course or training.
Imagine a heating page that promises to remove your gas bills forever but didn’t tell you that your electricity bills will go up as a result – that’s what these people are doing. Is it deliberate or do they simply not know what they are doing? I’m not sure either is a good explanation.
I won’t go on about it any more today but needless to say be careful what you’re watching and clicking out there!