Hi Simon, what if owner lives in the property for last 12 months before selling it? Does the owner get an extract 9 more months for PPR relief? I.e. 12+9? Thank you.
Hi Simon, Excellent information as usual. Question. Playing Devils advocate, the CGT payable from the B2L is deffered if placed into the Enterprise scheme and payment due once you exit the scheme. At first sight it appears the intention is to pay the full amount of CGT due from the B2L sale when you exit the scheme or have I misinterpreted this, because having 2 bites of the CGT allowance for the same funds, all be it straddling 2 tax years seems to good to be true and would surely be challenged by HMRC. Has this been challenged by HMRC ? Or, is it permissible because of the risk to the investors capital when investing in the Enterprise scheme so the previous gain from the B2L is at risk and if it were lost there would be no CGT to pay at all on the previous B2L gains ?
Hi Stevie, so to get full deferral you have to reinvest an amount at least equal to the chargeable gain, ie the gain after the allowance, then when you sell the EIS shares you’ll be able to get the annual allowance to reduce the taxable gain at that point
This is likely taking the Mickey, but having sold the EIS shares to grab another year of CG Allowance, could the gain now remaining (ie reduced by the Annual Allowance) be deferred by immediately buying another chunk of EIS investment equa to this now lower capital gain? Then we could sell the EIS in the next fiscal year to use yet another Capital Gains Allowance! You can see where I am going...keep repeating this deferral and sale until the allowances make the capital gain disappear entirely! Alternatively, and more simply, what about selling the EUS shares a bit each year to crystallise just enough gain equal to that year's Allowance?
Hi Simon..if a property was sold before end of year 5th april 2022 and the proceeds were invested in the new tax year end of april 2022, would this still work. Or would i have had to had invested any proceeds in the old tax year.
Simon - your videos are super - pure gold.
Thanks
Does this still work if "John" had invested in a VCT instead?
Hi Simon, what if owner lives in the property for last 12 months before selling it? Does the owner get an extract 9 more months for PPR relief? I.e. 12+9? Thank you.
No, so it’s only really a ‘bonus’ period if you aren’t living there anytime soon before selling
Hi Simon, Excellent information as usual. Question. Playing Devils advocate, the CGT payable from the B2L is deffered if placed into the Enterprise scheme and payment due once you exit the scheme. At first sight it appears the intention is to pay the full amount of CGT due from the B2L sale when you exit the scheme or have I misinterpreted this, because having 2 bites of the CGT allowance for the same funds, all be it straddling 2 tax years seems to good to be true and would surely be challenged by HMRC. Has this been challenged by HMRC ?
Or, is it permissible because of the risk to the investors capital when investing in the Enterprise scheme so the previous gain from the B2L is at risk and if it were lost there would be no CGT to pay at all on the previous B2L gains ?
Hi Stevie, so to get full deferral you have to reinvest an amount at least equal to the chargeable gain, ie the gain after the allowance, then when you sell the EIS shares you’ll be able to get the annual allowance to reduce the taxable gain at that point
@@simongray2484 Thank you for the reply. Can I ask, has the example that you have illustrated been challenged by HMRC ?
@@steviestevie9762 it’s HMRC’s rules, all of it
@@simongray2484 Thank you again
This is likely taking the Mickey, but having sold the EIS shares to grab another year of CG Allowance, could the gain now remaining (ie reduced by the Annual Allowance) be deferred by immediately buying another chunk of EIS investment equa to this now lower capital gain? Then we could sell the EIS in the next fiscal year to use yet another Capital Gains Allowance! You can see where I am going...keep repeating this deferral and sale until the allowances make the capital gain disappear entirely!
Alternatively, and more simply, what about selling the EUS shares a bit each year to crystallise just enough gain equal to that year's Allowance?
Hi Simon..if a property was sold before end of year 5th april 2022 and the proceeds were invested in the new tax year end of april 2022, would this still work. Or would i have had to had invested any proceeds in the old tax year.
Hi Dave, yes that would work