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Q&A: capital gains tax and anti-forestalling

In this week’s Q&A, David Lawson ATT, tax adviser at Croner-i My VIP Tax Team, explains the capital gains tax rates applicable on various property and company transactions potentially trying to take advantage of forestalling

Some clients are selling properties and a shareholding in a personal company, but what capital gains tax (CGT) rates will apply on each of the transactions?

Mr A – Disposal of commercial property to his son. The contracts exchanged on the 15 October 2024 with completion to take place in April 2025 for a gain of £600,000. They entered into an early contract in anticipation of CGT rates increasing following the 30 October 2024 Budget.

Mr B – Disposal of residential property that was used for rental purposes when contract was entered into on 1 October 2024 but there were some delays on the purchaser’s part so the transfer of property did not happen until 15 November 2024. A gain of £115,000.

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