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SolicitorRM
SolicitorRM, Solicitor
Category: Property Law
Satisfied Customers: 5219
Experience:  Director and Principal Solicitor. UK
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I sold a part of my property to a company on a lease. the

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hi
JA: Hi. How can I help?
Customer: I sold a part of my property to a company on a lease. the company is owned by me and my father. now there is a cgt am I able to reverse this transaction.
JA: What steps have you taken so far? Have you prepared or filed any paperwork?
Customer: the lease is registered with the land registry. this week
JA: Where is the land located?
Customer: london
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: that's it
Customer: replied 14 days ago.
surrendering the lease and not incur cgt
Hello,

I've been working hard to find a Professional to assist you with your question, but sometimes finding the right Professional can take a little longer than expected.

I wonder whether you're ok with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.

Thank you!

Good evening, welcome to just answer. I am a solicitor and have reviewed your question for you. It is not easy to do if you had done all the transfer paperwork. You would look to sell the property back to yourself  but the chargeable profit when you initially sold would still have to be paid. Amy clarification please do not hesitate to send your follow up question, I  am glad to assist further. All the best

Customer: replied 11 days ago.
what are my options.

Good morning, If all you are trying to do is to avoid paying CGT but there has been a chargeable gain, unfortunately there isn’t any option. You can’t even employ discretionary trusts where the transfer was to a company and not a gift to a family member, I am sorry but you can reverse this transaction.

Customer: replied 11 days ago.
what about beneficial ownership

What do you mean? If you made a gain for your proportionate share and there is no way of saying this was your only home then cgt is payable,

Customer: replied 11 days ago.
ok I understand I'm in serious trouble.
Customer: replied 11 days ago.
my solicitor and my accountant really screwed me up.
Customer: replied 11 days ago.
can inland revenue make exceptions

I am sorry but if you did not get correct advice from either and it’s to your financial detriment you must complain to them and if they see any negligence on their part they would want to address it for you without escalation to a professional negligence claim. All the best

Customer: replied 11 days ago.
cgt is enough to bankrupt someone either me or them.
Customer: replied 11 days ago.
thanks

There aren’t valid reasons for an exception though, hmrc is after making money, they will not make an exception because another professional failed to advise you, they will expect the tax and direct you to seek any remedy from your advisers unfortunately.

You are welcome,

SolicitorRM, Solicitor
Category: Property Law
Satisfied Customers: 5219
Experience: Director and Principal Solicitor. UK
SolicitorRM and other Property Law Specialists are ready to help you
Customer: replied 11 days ago.
can I sue my solicitor for not advising me correctly. if so what will happen to the solicitor.

You can send a formal complaint to them first, following their complaints procedure. They may have an answer for you that may clarify their reasons for giving you the advice that they gave. If you are not satisfied with their response you can escalate your complaints to the Legal Ombudsman Service. This is free and you do it online. Alternatively if you can afford the court and legal representation fees you could sue them for professional negligence to recover what you believe you have lost as a result of their advice. Your new solicitor will do a merits assessment and advise on prospects before you commence litigation. All the best

Customer: replied 11 days ago.
what if I get the solicitor to agree on this what will be the impact on his firm. and also avoid involving a third party solicitor and for him to contact his own insurance company.

If he agrees that he is liable then he pays you what you claim to have lost. He will have to report the complaint to his professional indemnity insurer and his premium on renewal will be high.

Customer: replied 11 days ago.
how high, he's a nice guy I don't really want to go down this route. I have no other choice.
Customer: replied 11 days ago.
also how long is this process.

That’s not something anybody (not even the solicitor) will know, the insurer is the one that assesses risk on renewing cover.On time scales you will need to check the firm’s complaints procedure to know what they anticipate, each firm will have their own time scales. I would say unless he admits liability straight away it would not take less than 8 weeks

Customer: replied 11 days ago.
he's already admitted but it's verbal. then if a claim is made it will take atleast 8 weeks for them to pay out. is that correct.

That is my estimate based on my practice complaints procedure but you must check your solicitor’s complaints procedure for their time frames.

Customer: replied 11 days ago.
there's only two people in the firm husband and wife. I'm thinking about the process after he admits liability in a form of a letter or email.

They should therefore say in the letter what remedy are they offering and you either accept it or reject it and say how much would be satisfact

Customer: replied 11 days ago.
is it reasonable to ask for the entire cgt liability.

Hi, not if you were going sell even if you had been given the information. You just need to be honest with yourself what would you have done had you been told of the cgt?

Customer: replied 11 days ago.
I would not have created a lease as I have no intention of selling I was only capital raising. the money that I wanted to borrow is less than my capital gain tax.

So you could explain  that in arguing that you would not have sold at all if you had been advised of the cgt liability and justify requiring damages in the sum of the cgt liability. Let them come back with a defence and you can deal with it at that stage.