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bigduckontax
bigduckontax, Accountant
Category: UK Tax
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About capital gains tax. If you sold a buy to let flat and

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About capital gains tax. If you sold a buy to let flat and bought another buy to let property would have to pay CGT, or could it be rolled over? Also if i bought the property for £185000 & its now worth £210000 how much capital gains tax do i pay. I also
spent £10,000 on double glsxibg. Thankyou
Submitted: 1 year ago.
Category: UK Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith one of the experts on Just Answer and please to be able to assist you. You can apply Rollover Relief as you suggest, but that merely postpones the gain for taxation purposes until the time of the ultimate disposal of the property. Your capital gain is 210K - 185K - 10K = 15K. You have an Annual Exempt Amount (AEA) of 11.1K to offset this so that reduces the gain exposed to tax to 3.9K; worst case scenario with tax at 28% is a tad over 1K Capital Gains Tax (CGT) due. CGT is levied at 18% or 28% or a combination of the two rates depending on your income including the gain in the tax year of sale. However, instead of AEA, if you lived in the flat before you started to rent it out then Lettings Relief, available up to 40K, could be substituted for AEA. However, from the tenor of your question this appears unlikely. Fortunately, in your case, the CGT exposure is not onerous. I do hope that my answer has been of assistance to you.
Expert:  Tony Tax replied 1 year ago.
I'm afraid that you cannot rollover a gain on a buy to let property into another buy to let property unless both properties are let as furnished holiday lettings, ie they are business assets, or the asset you buy is a business asset following the disposal of another business asset including a furnished holiday let property.
Take a look at the link below for more information on business asset rollover relief:
https://www.gov.uk/government/publications/business-asset-roll-over-relief-hs290-self-assessment-helpsheet/hs290-business-asset-rollover-relief-2015#what-is-business-asset-rollover-relief
I hope this helps but let me know if you have any further questions.
Expert:  bigduckontax replied 1 year ago.
The quoted link is merely giving an example of where roll over relief could apply. Elsewhere the following information is dispensed:
'Getting relief for the assets you have disposed of
Both the old assets you’ve disposed of and the new ones you’ve acquired must be:
•interests in buildings or parts of buildings
•interests in land'
If kollows that roll over relief applies.
Expert:  Tony Tax replied 1 year ago.
Take a look at the article written by the National Landlords Association here:
http://www.landlords.org.uk/news-campaigns/campaigns/capital-gains-tax-cgt
I would suggest they know what they are talking about and I rest my case.
Expert:  bigduckontax replied 1 year ago.
I scarcely think the observations of a mere pressure group an appropriate platform for argument against against the Gov UK's own web site.
Expert:  Tony Tax replied 1 year ago.
I was the expert who referred you to the HS290 HMRC helpsheet and I can assure you without fear of contradiction from anybody who knows anything about tax in this area that you will not be able to rollover the gain from one regular buy to let rental property into the purchase of another regular buy to let property. I also have the backing of two other UK tax experts who have added their support to my posts.
The NLA will have done their homework and will have taken advice from their own advisers on this. Why not call them and listen to what they have to say.
Expert:  bigduckontax replied 1 year ago.
Such a pity; only last year I handled a clients claim for roll over relief for a buy to let switch where no holiday lettings were involved. The relief was granted by HMRC with no difficulty.

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