Companies face shock property tax
Posted: 11th February 2013
It has been announced that the Government is to extend the Capital Gains Tax (CGT) regime on properties held by non-resident companies to UK resident companies as well.
The practical effect of the change will be to increase the charge to Corporation Tax (CT) on property gains to an effective rate of 28 per cent: the current rate ofCT is 23 per cent
The charge will apply when a property is disposed of for £2 million or more and will apply to gains accruing after 1 April 2013.
Expect considerable discussion before the Budget on 20 March – and afterwards!