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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 5329
Experience:  FCCA FCMA CGMA ACIS
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Foreign corporation owned property which was let and paid

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Foreign corporation owned property which was let and paid tax on its surplus income.
The property was sold on 29th March 2018 for £2,600,000. It was valued on 1st April 2015 at £2,500,00 and paid valuation fees of £1,800.
What is the capital gain payable!

Hello, I am one of the experts on Just Ansqer and pleased to be bale to help you with your questions.

Corporate bodies are not subject to the UK Capital Gains tax (CGT) rules, all such transactions being passed through the trading account and being taxed under the Corporation Tax (CT) regime.

I do hope that you have found my reply of assistance.

bigduckontax and 2 other Tax Specialists are ready to help you

Thank you for your support.

Customer: replied 2 months ago.
Based on your reply I completed the Return- Disposal of High Value Residential Property-ATED-related capital gains summary was submitted to the Revenue including the gain and corporation tax at 19%.
The Revenue acknowledged receipt and ask for a computation and valuation at 5 April 2015. Ten days later they emailed me and said after checking the Return that our client has no non-resident Capital gains tax to pay.
Can you please confirm that is so and what relief was five to wipe the capital gain tax. I cannot advise the client that no gain arises and then the Revenue demands tax of say £19,000 on gain of £100,000!If you wish to speak to me my number is ***** 652193
A. Nicolaou

The approach by HMRC appears correct as corporate bodies are not subject to CGT.