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What if a buy-to-let is my only property?
DoingMyBest
Posts: 1 Newbie
Dear forum,
I've been renting in central London for several years, working really hard to save up enough money to put down the deposit on my first home.
In 2014, I had a small amount saved up already, but couldn't afford to buy a house I wanted anywhere near central London, so rather than have my savings sat doing nothing in the bank, decided to invest in a buy-to-let property in the north of England.
I'm now considering selling the buy-to-let property, as by putting the capital from that together with the additional money I've saved over the past 4-5 years, I can finally afford a deposit on a home I want for myself.
I am wondering where this leaves me in terms of capital gains tax. On the face of it, it seems that I may have to pay CGT on the full gain I'd realise upon selling the buy-to-let property (hopefully around £30k increase in value), but I intend to invest all of this money in my future primary residence.
Can anyone offer any advice on this?
Many thanks,
DMB
I've been renting in central London for several years, working really hard to save up enough money to put down the deposit on my first home.
In 2014, I had a small amount saved up already, but couldn't afford to buy a house I wanted anywhere near central London, so rather than have my savings sat doing nothing in the bank, decided to invest in a buy-to-let property in the north of England.
I'm now considering selling the buy-to-let property, as by putting the capital from that together with the additional money I've saved over the past 4-5 years, I can finally afford a deposit on a home I want for myself.
I am wondering where this leaves me in terms of capital gains tax. On the face of it, it seems that I may have to pay CGT on the full gain I'd realise upon selling the buy-to-let property (hopefully around £30k increase in value), but I intend to invest all of this money in my future primary residence.
Can anyone offer any advice on this?
Many thanks,
DMB
0
Comments
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It doesn't matter if you invest the gain in your residential house, the 330 at Kempton Racetrack or a charity for fluffy kittens, the full CGT is still due.0
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deduct purchase costs
selling costs
spending of a capital nature
and then use your annual allowance
tax due on the balance - 30k increase in value assuming modest purchase and sale costs is likely to generate no more than a couple of grand of tax max. pay up and feel happy for contributing0
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