Recovering CGT on sale of property

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    Recovering CGT on sale of property

    Hello. I am considering selling a property that used to be my own home. After taking into account all that I can, I will have a CGT liability of approximately £35,000. I have read somewhere/was told that with careful planning/investment you can effectively recover the tax paid ie max out pension contributions to get a rebate. There was also some sort of investment vehicle that would allow you to get some sort of tax relief, I just can't remember the details. I know this is so vague but am wondering if anyone has any knowledge of such a thing?

    Many thanks for your time and help

    #2
    You can defer your CGT by investing in EIS or SEIS shares, or just put it in your SIPP and claim most back.

    Comment


      #3
      Tax relief for reinvestment of gains in qualifying schemes is intended to stimulate investment in small businesses, and is incorporated into the enterprise investment scheme (EIS), as EIS deferral relief. This provides a ready supply of venture capital to growing businesses.

      Deferral relief allows a UK resident investor to defer capital gains tax (CGT) on a chargeable gain arising from the disposal of any asset, or a gain previously deferred, by investing in new shares of a qualifying unquoted trading company.

      The relevant definitions are set out in the EIS legislation. Most trades qualify, but there are a number of exceptions including but not limited to, banking, insurance and other financial activities, and those considered to be 'asset backed' (such as farming, forestry, property development, hotels and nursing homes).

      Above extract copied from :

      https://www.plummer-parsons.co.uk/ta...eferral-relief


      Does the EIS legislation include residential property ?

      Comment


        #4
        here is the gov website on capital gains tax relief :


        https://www.gov.uk/guidance/venture-...ins-tax-relief

        Comment


          #5
          Two things you can't avoid - death & taxes!

          Comment

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