Hi. I bought a BTL flat in 2000 for £80000. Hope to sell this year (2012) for £140000. Obviously I had some legal and other costs for the purchase and will have similar for the sale. Am I right in thinking I can work out the average annual increase in value and deduct the last 3 years worth of property value increase from the cgt calculation? Can I also deduct anything due to letting allowance ?
Now this year I will also buy another BTL property (partly funded by the sale of the first) can I therefore postpone the declaration of,cgt on the first property if I have spent it on another property in the same year?
Alternatively if I have to make additional capital expenditure on the new property in order to make it habitable then can I offset this additional expenditure against the gain on the first property?