You can certainly do that. However, instead of selling one of the referred properties, will it be possible you to borrow ? That way you will keep the property too as the real estate markets have shown signs of revival. This way, you would also hold the existing property, and based on your eligibility, if you manage to get the land financed, you would create another property without selling the existing one.
HOWEVER, if the first option does not suit you, you can certainly go about selling the one of the properties as that would be the most preferred way of going about that.
I hope this helps...Warm Regards,
Thanx for speedy respone. Im afraid I would have to sell at least one property. If I sell one property that im not registered as living in..ie not my sole residense will it be liable for CGT?? And is there a way around this??
Yes, since the property that you would sell are your investment properties, and not the one you are residing in, they will attract CGT. Also because, you don't pay income tax on it as dealing in property is not your line of business. The following link shall prove to be a good guidance for you. http://www.hmrc.gov.uk/cgt/intro/when-to-pay.htm#2
To find out the exact nature, you may contact your local office at http://search2.hmrc.gov.uk/kbroker/hmrc/locator/locator.jsp?type=1
I am sure this would help...