BTL Property

jayship

A friend has owned a BTL property which he has been letting out and recently sold. He has never lived in the property for various reasons. There is CGT payable on the profit minus expenses.
He has always lived in rented accomodation due to work further away. Is it possible to reduce CGT if he buys the property now for his personal use on a residential mortgage using some of the profit towards a deposit. Usually CGT on BTL property has to be paid within 30 days and he has to submit a return before end of October
Will be grateful for input from forum members. Have contacted couple of accountants but they were unable to advise as they were not familiar with the procedure.

Thanks

canaldumidi

If he buys what? The BTL property he already owns????

As you say, if he sells the BTL property, the CGT has to be paid within 30 days. Buying somewhere else will not affect that.

jayship

Thanks canaldumidi. 
As in the above post BTL mortgage property has been sold end of September 2021. CGT is payable on the profit.
Can this be reduced if he now buys another property to live in on a Residential mortgage. He does not own a property at the moment.

CKhalvashi

No.

He has owned an investment and made a profit on this outside of an ISA, SEIS etc, why does he not believe he should pay tax on the profit from his investment?

jayship

He is happy to pay CGT as in my post. The property was bought with the intention of living in it but due to work commitments elsewhere he could not occupy.
He is trying to find out if the CGT can be reduced if he decides to buy a property to live in now using some of the profit towards a deposit and borrowing under residential mortgage as he is renting at the moment.
Thanks Kalvashi for your comments.

p00hsticks

jayship said:

He is trying to find out if the CGT can be reduced if he decides to buy a property to live in now using some of the profit towards a deposit and borrowing under residential mortgage as he is renting at the moment.

And the answer is that he can't.

steampowered

No, you cannot "rollover" your equity from one property into another.

TheJP

jayship said:

He is happy to pay CGT as in my post. The property was bought with the intention of living in it but due to work commitments elsewhere he could not occupy.
He is trying to find out if the CGT can be reduced if he decides to buy a property to live in now using some of the profit towards a deposit and borrowing under residential mortgage as he is renting at the moment.
Thanks Kalvashi for your comments.

Profit is still profit regardless of what he wants to spend it on.

badger09

steampowered said:

No, you cannot "rollover" your equity from one property into another.

???

Of course you can "rollover" your equity from one property into another. That's what most people do.

OP's friend can do what he likes with the profit from sale of his rental property, but it will have no impact on the CGT due. 

jayship

Thanks to everyone for their input. My friend has taken the advice on board and is in the process of submitting a CGT return.