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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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If you sell property to a school which has charitable status

Resolved Question:

If you sell property to a school which has charitable status do you avoid paying any CGT ??
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.

Hi.

You don't have to pay CGT if you make a gift of a property to a charity. If you sell the property to the charity at a discount to its open market value, then you may have CGT to pay if the sum you sell it for is more than you paid for it and your totla net gains for the year exceed the annual CGT exemption. Take a look here for confirmation.

The first £11,000 of gains you make in a tax year are exempt from CGT.

I hope this helps but let me know if you have any further questions.

Expert:  TonyTax replied 2 years ago.
If you look under the heading "How to get relief for gifts" on page 7 of HS295 here, it confirms the information given in the link in my previous post (Example 4).

You appear to have rated my technically correct answer as poor. Can I ask why. I don't mind if you don't want to pay but to rate a technically coorect answer as poor is not fair to me. Please reconsider your rating as it is uttlerly unfair to rate it as poor simply because its probably not the answer you wanted. I don't believe in embellishing answers when there is nothing to embelllish it with.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15940
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and other Tax Specialists are ready to help you
Customer: replied 2 years ago.
Well you not accurate as if goes to a charity there is exemption on CGT. In court of law civil case. But I don't want you loose your job so thank you for your time.
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
If you sell a property to an organisation which has charitable status then any gain you make will be subject to Capital Gains Tax (CGT). You do have an Annual Exempt Amount of 11K to offset any gains.
If you give a property to an organisation which has charitable status then there is no gain to you to be exposed to tax and you are not liable to CGT on the conveyance.