{"id":135847,"date":"2023-04-10T14:00:12","date_gmt":"2023-04-10T07:00:12","guid":{"rendered":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/will-capital-gains-tax-apply-if-a-sale-of-a-buy-to-let-property-is-used-to-purchase-another\/"},"modified":"2023-04-10T14:16:29","modified_gmt":"2023-04-10T07:16:29","slug":"will-capital-gains-tax-apply-if-a-sale-of-a-buy-to-let-property-is-used-to-purchase-another","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/will-capital-gains-tax-apply-if-a-sale-of-a-buy-to-let-property-is-used-to-purchase-another\/","title":{"rendered":"Will capital gains tax apply if a sale of a buy-to-let property is used to purchase another?"},"content":{"rendered":"


\nThe proceeds for the first house would be fully used as a deposit for the larger second oneQ I own a buy-to-let property and am considering selling it to fund the purchase of a larger buy-to-let investment property. In essence, I would be moving the investment from property one to property two. The sale proceeds of property one (after deduction of the outstanding mortgages) would be fully used as a deposit for property. Would capital gains tax still apply, even though the investment has moved to another property?DPA Yes, capital gains tax (CGT) would still apply but, no, you wouldn\u2019t be able to defer paying the tax by claiming business asset rollover relief \u2013 which is what I assume you are hoping to do. If you are eligible to claim it \u2013 which you are not \u2013 rollover relief lets you put off paying any CGT due on the gain from the sale of a business asset until you sell the business asset to replace it but only \u2013 among other things \u2013 if you are trading. Unfortunately for you, HM Revenue and Customs doesn\u2019t consider investing in a buy-to-let property as trading. So you will have to pay CGT at 18% or 28% (depending on the rate of income tax you pay) on the gain you make on property one less the new \u00a36,000 CGT allowance (which is down from \u00a312,300 in the 2022-23 tax year and due to go down further to \u00a33,000 in 2024-25). Continue reading…
\n
\nSource : theguardian.com
\nRead more…Will capital gains tax apply if a sale of a buy-to-let property is used to purchase another?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The proceeds for the first house would be fully used as a deposit for the...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-135847","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-zl5","jetpack-related-posts":[{"id":113891,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/if-i-sell-a-buy-to-let-property-and-buy-another-can-i-defer-cgt\/","url_meta":{"origin":135847,"position":0},"title":"If I sell a buy-to-let property and buy another, can I defer CGT?","date":"January 27, 2020","format":false,"excerpt":"\r 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\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":136541,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/we-are-unmarried-and-plan-to-buy-a-house-but-what-about-capital-gains-tax-and-stamp-duty\/","url_meta":{"origin":135847,"position":1},"title":"We are unmarried and plan to buy a house but what about capital gains tax and stamp duty?","date":"May 8, 2023","format":false,"excerpt":"\r I own a property, which is in a family probate trust, and she inherited one, and we aim to sell them and use the proceedsQ My partner and I intend to buy a property and move in together. 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Will I have to pay capital gains tax?","date":"December 18, 2023","format":false,"excerpt":"\r I lived in the \u00a3330,000 house before moving in with my partner but may accept \u00a3310,000 for quick saleQ I am in the process of selling a property to buy another and I am a bit confused about whether capital gains tax (CGT) will apply, so I was hoping\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":98198,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/capital-gains-tax-could-be-set-at-earners-top-tax-rate\/","url_meta":{"origin":135847,"position":4},"title":"Capital gains tax could be set at earner's top tax rate","date":"September 20, 2018","format":false,"excerpt":"\r A capital gains tax on the sale of investment property, businesses, shares and farms is a step closer if the interim report of the Tax Working Group leads to firm recommendations next February.The final recommendations of the independent...\r \r Source : nzherald.co.nz\/Property\r Read more...Capital gains tax could be set\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":98192,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/introduce-capital-gains-tax-says-sir-michael-cullens-tax-working-group\/","url_meta":{"origin":135847,"position":5},"title":"Introduce capital gains tax, says Sir Michael Cullen's tax working group","date":"September 20, 2018","format":false,"excerpt":"\r A capital gains tax on the sale of investment property, businesses, shares and farms is a step closer if the interim report of the Tax Working Group leads to firm recommendations next February.The final recommendations of the independent...\r \r Source : nzherald.co.nz\/Property\r Read more...Introduce capital gains tax, says Sir\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/135847"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=135847"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/135847\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=135847"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=135847"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=135847"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}