Let’s have a think about that:
- The company pays 40% tax on the rent (25% corporation tax plus close company surcharge).
- The shareholder dies, and someone inherits the shares in the company. He/she pays CAT based on the value of the shares.
- The properties are still trapped in the corporate and the corporate will still pay 33% CGT on the properties if they’re sold.
- There can be something of an angle if the company is an offshore one, but that’s not what’s been suggested in the article.
I must admit, I read the article yesterday and thought it was very poor.