Property News · January 27, 2020

If I sell a buy-to-let property and buy another, can I defer CGT?


A landlord appears to be hoping he can claim business asset roll-over relief to delay paying taxQ If I sell a buy-to-let property and immediately use proceeds to buy another, is the payment of capital gains tax deferred?SKA Short answer: no. You are clearly hoping that selling a buy-to-let property and buying another would make you eligible to claim business asset roll-over relief but it doesn’t. Roll-over relief lets you put off paying any capital gains tax (CGT) due on the gain from the sale of a business asset until you sell the business asset that you bought to replace it but only – among other things – if you are trading. And HM Revenue & Customs (HMRC) doesn’t consider investing in a buy-to-let property as trading. Continue reading…

Source : theguardian.com
Read more…If I sell a buy-to-let property and buy another, can I defer CGT?

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