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CGT on BTL Property
Uncle_Fester_2
Posts: 291 Forumite
in Cutting tax
Would I have to pay CGT on a BTL property, which I'm selling to buy another one? (BTL)
Many Thanks
Many Thanks
0
Comments
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yes you do0
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Even if I'm using all the money from the sell for the purchase?
Surly this can't be right?0 -
You are selling the asset and creating a chargeable event. It's quite fair.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Yes, the gain on buy-to-let property is chargeable on the sale, no matter how much of it you reinvest, because it is not classed as a business asset for capital gains tax.
You could subscribe to Enterprise Investment Scheme Shares to defer the gain, but once these shares are sold, the gain on the BTL becomes chargeable.0 -
Even if this was my one & only property?0
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Yes, if it was a BTL property.
If you'd lived in it for some of the time before renting it out, there are some exemptions.0 -
If I was to Remortgage and release as much of the equity as possible (up to 85% LTV).
And then Sell, would I only be liable for the remaining 15%?
Many Thanks0 -
NO.
The mortgage and the property are separate issues.
The chargeable gain is the difference between the sales proceeds (less costs) and the cost of the property (plus costs). The mortgage is irrelevant.0 -
Is this a loop hole in the system?
(Take as much money out as possible, before selling to reduce/avoid tax?)0 -
,..................noUncle_Fester wrote: »Is this a loop hole the system?
(Take as much money out as possible, before selling to reduce/avoid tax?)0
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