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Quite simply this is tax evasion
They should have thought about potential consequences when they split.
Does it affect you in any way - no
Would it affect them - possibly.
HMRC could investigate because of course if CGT was payable then they would want ti
But they would NOT pay CGT twice, they would only pay it once
In any event it would only be the DIFFERENCE between purchase and selling price and then taking off the allowance of £10,600
They would only pay it on the difference portion not the whole amount
I would therefore be very wary of what they say.
If they only want the £5000 then clearly they would only pay CGT on the £5000 itself.
However I suspect it is more a plan to avoid stamp duty.
If this is the case you need to be very careful.
HMRC are alter to these type of schemes and both you and the buyer could be in trouble.
If the fixtures are really worth £5000 then that is fine
But if this is just for the sake of avoiding tax - it is not fine
Can I clarify anything for you about this today please?
I'm really only concerned about my position and how I can run the business going forward - not to interested in their issue with HRMC
It wont really affect you in any way. You would only be liable for CGT when you sell which would be the difference between purchase and selling price.
That would be your gain.
Then you would pay tax on the difference.
So whether it is split or together, does not really make an awful lot of difference.
The issue of Qualifying Loan Interest - renting the commercial space and writing off 50% of running costs - all still possible - although we have only purchased the residential freehold ?
You need to check the details, but I suspect not.