Re-Investing profits within a Company
Question
If I own my property within a company then can I re-invest profits to defer tax? I understand that it is not possible to defer tax if the properties are held outside a company but is it possible if they are held within a company?
Ian Says It is not usually possible to defer corporation tax by reinvesting in other properties within a limited company if these are residential properties. Commercial properties are treated differently and there does exist a deferral of capital gains for reinvestment in such properties, although the rules are too complex for discussion here. The main use of a limited company is in reducing the rate of tax payable on income and gains within the company, hence producing more net income to reinvest in future.
Case Study
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