Selling property


R

Roy

I posted this a few days ago but it has not apeared on the newsgroup.

I had two properties and sold a half share in the second property.

Do I still claim the full CGT allowance ?

Within the same year I obtained a mortgage for property to let.

Should this be treated as investing in another business.


Thank you
 
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R

Ronald Raygun

Roy said:
I posted this a few days ago but it has not apeared on the newsgroup.

I had two properties and sold a half share in the second property.

Do I still claim the full CGT allowance ?
If you mean your annual allowance (£9200), then yes.

Anything else specifically related to the property, not only allowances
and reliefs, but also the gain itself, would of course be halved.
Within the same year I obtained a mortgage for property to let.

Should this be treated as investing in another business.
In what way? If you are already operating a rental business, then adding
a further rental property to your portfolio is investing in the *same*
business.

There is no rollover relief, i.e. you cannot reduce your CGT bill in
respect of the gain from sale of the above (part-)property, by claiming
to have invested the proceeds in an alternative property.

The only tax-mitigating effect of the mortgage loan is that, for income
tax purposes, you can set the interest you pay on it against rent.
 
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R

Roy

In what way? If you are already operating a rental business, then adding
a further rental property to your portfolio is investing in the *same*
business.

There is no rollover relief, i.e. you cannot reduce your CGT bill in
respect of the gain from sale of the above (part-)property, by claiming
to have invested the proceeds in an alternative property.

The only tax-mitigating effect of the mortgage loan is that, for income
tax purposes, you can set the interest you pay on it against rent.


Many thanks
 

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