Owning properties for rental and capital gains tax

G_M

cganesh wrote: »

No, don't want to have a mortgage,as I'm already paying rent on this house and I wanted to get enough rental to cover it, but do you think it's actually worth it, if I'm going to be paying 28% CGT on the value increase when I sell it/them?

well if you have made sufficient capital profit (ie the price has gone up) to make you liable for CGT, then you are in profit aren't you?

And if the price has NOT gone up, then you won't pay any CGT.

By your argument, no one would ever gointo business, as making a business profit would make them liable for tax!

cganesh

Yeah, I think it is a good idea because not only will I get rental income but I will be tracking the property market by owning something, so have a house at the end of it, however much it goes up. I was just asking what other people thought of the idea and wondering if buying one or two properties would make a difference re tax. I must admit the thought of 28% CGT on profit when selling it sounds rather steep, but I will still get something if the house value increases and I will still be better off with the rental income (if it rents out ok).
Thanks for your answers:j

Cornucopia

I would suggest that you have a good look at the CGT rules and work out what you may be liable for based on the sort of properties you are thinking of buying.

https://www.gov.uk/capital-gains-tax/work-out-your-capital-gains-tax-rate