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Can profits from second home be contributed to personal pension - to lower capital gain tax?
Comments
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JonMitchell said:Just to clarify, the rental property we are selling is a BTL property. We have two other properties that are used as holiday lettings.
BTL activity is treated as investment activity for pension purposes, so is excluded ("unearned" income)
FHL activity is treated as "trading" activity and is included for pension purposes ("earned" income)
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If that is the case then presumably for profit made in 24/25 tax year, it is now too late to make use of it for getting tax relief on pension contributions?anselld said:
FHL rental profit. Yes until 5 April 2025.JonMitchell said:
Presume rental income from holiday lettings can be pensionable, at least till 24/25 YE?anselld said:Neither capital gains not rental income are pensionable. So if you have normal salary from other sources you can put all that in which may in turn bring more of the CGT liability into the basic tax band but if you don’t have earnings you are stuck.You can invest in EIS but not that is risky and it is only a deferment of CGT not a reduction.0 -
Yes indeed. Contributions would also need to have been made by 5 April 2025.Albermarle said:
If that is the case then presumably for profit made in 24/25 tax year, it is now too late to make use of it for getting tax relief on pension contributions?anselld said:
FHL rental profit. Yes until 5 April 2025.JonMitchell said:
Presume rental income from holiday lettings can be pensionable, at least till 24/25 YE?anselld said:Neither capital gains not rental income are pensionable. So if you have normal salary from other sources you can put all that in which may in turn bring more of the CGT liability into the basic tax band but if you don’t have earnings you are stuck.You can invest in EIS but not that is risky and it is only a deferment of CGT not a reduction.1
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