CGT on let properties in sequence

[WILLOMAX]

mMy situation is this: Bought a B&B in 1996 for 130,000 and sold it in 2004 for 445,000. I bought a house in Jan 2005 for 280,000 which needs 50,000 spent on it. The house will be used to let to students. Obviously there is a large cgt problem to deal with. I have just discovered that a student let is not classified as a business thus would not count as a reinvestment. Is there a way around this (holiday let seems to be a business) or do I have to face the consequences.
Any advice would be gratefully received.
Thanks :eek:

[Yardleystar]

Hi

CGT will be due on the sale of the first property which is unavoidable as tax planning cannot be undertaken in retrospect.

The best you can do now is mitigate the tax bill by calculating the allowances and any reliefs correctly.

You should also be aware that penalties and interest may be accruing on your tax bill and any action should be reviewed urgently

If you need help, feel free to give me a call or drop a mail