Reader feedback

I'm always keen to hear from our readers and one of you have commented on an article we re-published yesterday that was published by the BBC.  I've received the following email from one of our readers - Rob L who, I believe correctly, has pointed out some inaccuracies in the article we re-published yesterday concerning changes to CGT:-

Hi Bill

The principle of this article is correct, but I think there are a few factual inaccuracies which let it down a bit.

1. The CGT rate for private investors selling a property is 18% (if basic rate income tax) or 28% (if higher rate) not 40%
2. Every individual has an annual tax free allowance for capital gains which is going up from £11,300 per person to £11,700 in April 2018.  This can be deducted from your capital gain before calculating tax liability when you sell.  If you bought (and sold) the property jointly as a couple you can each use your allowances
3. Companies pay capital gains at their corporation tax rate which is currently 19%
4. Although indexation relief is being removed if you successfully incorporate taking a property into a Limited Company then (assuming you are able to use Section 162 relief and don’t pay CGT on the transfer then at the point you incorporate you bring the property into the Company at its current market value, which means the future CGT liability will be lower.  Companies of course do not get a tax free CGT annual allowance.

Good intent in the article but suggest you get whoever wrote it for you to do a bit of fact checking otherwise it loses some credibility.

All the best,

Rob

Thanks Rob, We make every effort to ensure the data we use is valid and articles we occasionally re-publish are accurate.  I think on this occasion we were guilty of trusting the source.  I am always keen to hear from readers, so thanks to Rob for taking the trouble to write on this occasion!