How to Avoid Capital Gain Tax on 2nd Property sale

manhattan

Do not even attempt tax fraud! It will come back and bite you on the a$$

TTMCMschine

Even if you got away with it now they can go back through your finances for years, so imagine they catch up with you in 5 years time & you have to pay:

a) the tax owed (& they will calculate a figure & it's up to you to disprove it if they over estimate it - not up to them to prove that they've got it right!!)
b) 5 years interest on the tax owed
c) a fine of up to 100% of what you owe
d) another fine for not admiting it in the first place.

You could end up seriously out of pocket to the tune of £15K - £20K or more.


They don't take any prisoners & they aren't "fair."

seven-day-weekend

I believe as others have said, that with the CGT exemptions plus the cost of all the improvenments you will not have to pay much CGT if you sell now.

>>..the intention was and is never to cheat the system.<<

However you like to think of what you proposed, what you asked in your OP sounded pretty like it to me! Unless you worded your question wrong and acually meant 'are there any legal tax breaks here?'

Anyway, there IS a perfectly legal way of not paying the tax (which we found out quite accidently, to our surprise and delight).

In 2004 we moved to live abroad. In 2005 we sold our investment property in the UK. THe Inland Revenue themselves told us that if we remained abroad until after 6 April 2009 we would not have to pay the CGT arising from the sale of this property, because we had sold it when we were abroad and were not intending to return permanently to the UK for five tax years.

So I suppose in effect we are tax exiles!:rotfl: :rotfl: