Myth-busting – Electrical Safety installations Act 202011:19 AM, 3rd August 2020
About 4 days ago 60
It seems to me to be very unfair that one can sell almost any other business asset and reinvest the money without having to pay CGT but NOT a Buy to Let!
Should we start a campaign for a legal change?!
I am sharing this story to warn people not to make the mistake I just did.
I have just found myself in a very tricky position because of this tax issue. I bought a property about 20 years ago for £84,000 as an investment, and over the years actually paid off the mortgage. Then about 9 years ago and subsequently, I decided to buy several other BTL’s by raising a huge mortgage against that unencumbered property. Last financial year I decided to sell it because it was in need of a major refurbishment programme and the investment required would have made little or no difference to the rental value. Having sold it for £450, 000 I paid off the mortgage and reinvested the equity in a smaller neighbouring property. I assumed (incorrectly) that as I was selling a business asset it would attract roll over relief. I am now faced with a CGT bill approaching £100,000, which thankfully I do have in my savings. However, this will completely wipe me out of any cash reserves and may mean I cannot complete an extension that I started on another property.
Maybe I should have gotten a better accountant?
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