How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • Go back-and-forth until satisfied
    Rate the answer you receive.
Ask SS Legal Advisor Your Own Question
SS Legal Advisor
SS Legal Advisor, Advocate
Category: Law
Satisfied Customers: 423
Experience:  Senior Caseworker at DL Solicitors
Type Your Law Question Here...
SS Legal Advisor is online now

I have sold shares in my private company and made a capital

This answer was rated:

I have sold shares in my private company and made a capital gain. However the buyer has not paid me and has indicated he will not be able to pay as agreed. Am I still liable for the CGT even though have no prospect of receiving the cash
JA: Where are you? It matters because laws vary by location.
Customer: in London it is a Uk reg company
JA: What steps have you taken so far?
Customer: consulted a lawyer to sue for the money
JA: Anything else you want the Lawyer to know before I connect you?
Customer: no just the CGT position
I am an experienced legal advisor and I am happy to answer your question.As you are aware Cgt is paid on the gain made. At this time you have not made a gain so it is arguable that Cgt is not payable at this time.Currently CGT is payable by 31 January of the tax year following the year of disposal.So you have plenty of time to sort the issue with the buyer.If you have not been paid for your shares then that would be a breach of contract by the buyer and you would be within your right to seek a legal remedy through the courts.Kind regards
Customer: replied 7 days ago.
You have not answered the question I know I can sue for the money but if I don't get paid am I still liable to pay the tax. By the way the shares were sold in March 2020 and the tax due by 31 Jan 2021
Allow me to clarify, at this time you have not made a gain, therefore you are not liable for cgt yet.Think of it as the contract is still ongoing and has not been completed. Until the contract has been completed (when you receive payment) you have not made a capital gain and therefore cannot pay cgt.
Customer: replied 7 days ago.
Thank will consider continuing with a call later
Happy to help,
Please do rate the answer.Kind regards
SS Legal Advisor and 4 other Law Specialists are ready to help you