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Thread: Member's interest in a CC, CGT etc.

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    Member's interest in a CC, CGT etc.

    Ok here goes, I would really appreciate any input.

    We have a CC that "owns" a property, (smallholding that is used primarily for residential by 3/4 of the members of the CC) There is a small bond on the property in the CC's name and all members have signed surety.


    Now we are in the process of selling said property.

    I have come up with the following idea: The buyer simply buys each members interest and therefore acquires the property and the CC.

    now for the Q's:

    1. Does the buyer (a Company) pay transfer duty (he will be buying less than 30% of shares from any given member at a time)
    2. Is the CGT regarded as normal CGT (ie. if a Member of the CC is retired, and the Income received from the sale of their interest is less than the bottom Tax bracket, will they be exempt from CGT?
    3. How do we get rid of the Bond?
    4. The CC is not VAT registered (oops) - should this be done before any of these transactions ?



    That's it for now Thanks in advance to all....

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    I bought another property around 3 years ago. I looked at buying it in a cc - at that stage the transfer costs to transfer the house into the cc was a lot more expensive than a normal transfer therefore i did not go the cc route. I believe that those high transfers have been done away with since then. I also investigated if the house was then sold again and is under the belief that no the transfer duties are not paid again as the new owner will have just bought the cc from me which just and only owns the house. Your points 2 and 3 I have no idea of but as far is vat on the property - Surely you do not have to be registered for vat if you are under the specific figure.

    This is just by input into the coversation - I may be wrong from 3 years ago, but thought I would just add my 5c. I will also wait to hear from the "experts".

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