Capital Gains Tax - Selling a flat and buying a new one

leonech

Hi All,

I'm about to sell a flat bought for £200K and sell it for £350K. The capital gains tax is £150K, where I should pay roughly 28% of tax. Is there a way to pay less if I invest all the money coming from selling the flat into a new property? Is this a possibility or do I still need to pay the tax when I sold the flat?

Kindly let me know.

Best Regards,
Leo

[Deleted User]

leonech said:

Hi All,

I'm about to sell a flat bought for £200K and sell it for £350K. The capital gains tax is £150K, where I should pay roughly 28% of tax. Is there a way to pay less if I invest all the money coming from selling the flat into a new property? Is this a possibility or do I still need to pay the tax when I sold the flat?

Kindly let me know.

Best Regards,
Leo

The capital gain is 150k not the tax due.  Has the flat been your primary residence the whole time you have owned it, part of the time or not at all?  Note that what you intend to do with the money is irrelevant in terms of CGT.

leonech

Thanks for your reply. No, it was a flat I rent out the whole time.

AnotherJoe

leonech said:

Hi All,

I'm about to sell a flat bought for £200K and sell it for £350K. The capital gains tax is £150K, where I should pay roughly 28% of tax. Is there a way to pay less if I invest all the money coming from selling the flat into a new property? Is this a possibility or do I still need to pay the tax when I sold the flat?

Kindly let me know.

Best Regards,
Leo

Is this your main residence ? Or is it a BTL and you a LL?

oldbikebloke

AnotherJoe said:

leonech said:

Hi All,

I'm about to sell a flat bought for £200K and sell it for £350K. The capital gains tax is £150K, where I should pay roughly 28% of tax. Is there a way to pay less if I invest all the money coming from selling the flat into a new property? Is this a possibility or do I still need to pay the tax when I sold the flat?

Kindly let me know.

Best Regards,
Leo

Is this your main residence ? Or is it a BTL and you a LL?

unlucky timing, your post crossed with Op's
it appears to have been a let property for the entire ownership period 

oldbikebloke

leonech said:

Hi All,

I'm about to sell a flat bought for £200K and sell it for £350K. The capital gains tax is £150K, where I should pay roughly 28% of tax. Is there a way to pay less if I invest all the money coming from selling the flat into a new property? Is this a possibility or do I still need to pay the tax when I sold the flat?

Kindly let me know.

Best Regards,
Leo

as this is a residential let property, you cannot claim rollover ("re-investment") relief as that class of asset is specifically excluded from such relief for CGT purposes 

as stated above, the gross gain is 150k from that you can deduct buying and selling costs plus your CGT allowance to leave you with the net taxable gain.

without full disclosure of your entire financial affairs it is impossible to say if all of that net taxable gain will be taxed at 28%, or whether some will be at 18% and the rest at 28%

leonech

Thanks All for you reply. Will the taxation been deducted with expenses such as the refurbishment of the flat?

Thanks

oldbikebloke

leonech said:

Thanks All for you reply. Will the taxation been deducted with expenses such as the refurbishment of the flat?

Thanks

so you have done no reading of your own?
You have to work out the tax yourself, that is why it is called self assessment.

do you know the difference between a capital cost and a revenue cost?
Based on the nature of your follow up question, I recommend you pay a professional to do the calculation for you, as it appears you don't, and explaining the difference requires in depth analysis of your expenditure to establish what is "refurbishment"