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Planning retirement to minimise CGT on BTL sale

Hi all

I have a flat rented out (no mortgage) which will yield in the region of £60-70k 'gain' I think when I come to sell.
If I coincide the  sale with retirement and use the proceeds to fund my first years of living will this mean I can 'use up' the lower rate tax allowance up to the £50k threshold? Meaning I would pay 18% CGT on the first 50k  and 28% on the remaining £10-20k - provided I have no other income in this period?
I will be over 60 but under 67 so no state pension yet - private pension to be left on hold.



  • silvercar
    silvercar Posts: 46,732
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    Sounds a good plan, you may be even better retiring mid financial year and not selling until the next financial year. You would get all the personal allowance tax free, plus any CGT allowance if it still exists and then be taxed at 18% upto the basic rate limit and 28% on the rest. 
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  • Olinda99
    Olinda99 Posts: 1,164
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    not sure how far away you are from retirement but one thing to bear in mind is that there is talk about aligning the cgt bands with income tax bands so it would be 20% and 40% not 18 and 28 if you waited until that happened
  • Thanks both 20 vs 18 isn't a big deal but 40 vs 28 is! Either way it will make sense to wait and sell in a 'zero income' year. I doubt it will be before 2025.
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