Alleviating CGT

[newletter]

Is it possible to defer or mitigate a CGT liability?
Can the proceeds of the sale of an investment property be re-invested to get something like rollover relief?

newletter

[Taxation Solutions]

If you sell an investment property then unfortunately you are not able to defer the capital gain on disposal. Roll over relief relates to business assets and a property that has been let on a normal AST basis to tenants, is classed as a non business asset.

Assuming the property in question fits into this catergory then you will broadly pay capital gains tax on the difference between the cost and sale proceeds. This figure will then be reduced by non bsiness asset taper relief depending on the number of years owned.

The capital gain will be much reduced if at some stage this proeprty was in fact your main principle private residence.

Jason
www.propertytaxation.co.uk