Capital gains tax when selling from a portfolio mortgage?

by Readers Question

13:13 PM, 15th September 2016
About 4 years ago

Capital gains tax when selling from a portfolio mortgage?

Make Text Bigger
Capital gains tax when selling from a portfolio mortgage?

I wonder if anyone could help me. I’m a landlord with a portfolio of properties with The mortgage works.cgt

I recently sold one of these properties, I came away with a profit of 130k, I would like to use this profit to release another property from the TMW portfolio.

My question is do I have to pay capital gains tax on this profit? OR can I use this profit to reduce the loan on other properties with the TMW?

I would appreciate some advice.

Thank you

Jeanette



Comments

Neil Harvey

21:48 PM, 15th September 2016
About 4 years ago

Hi Jeanette

Your comment below confused me.
Your capital gain is not at all linked to the amount you had to pay back to TMW.
It should be the sales price less purchase price less associated costs. The mortgage is irrelevant to the calculation.
I may well be mis-reading your comment, apologies if so

"Hi Mark, strangely enough after reading your outcome with TMW, I was expecting the worse. However, the amount they required was a reasonable amount…. Hence the 130k profit ! I’m now on a mission working out the best way forward with the possible CGT on this amount."

Jon Pipllman

6:53 AM, 16th September 2016
About 4 years ago

Ignore my previous comment. Personally owned Residential btl property sales are subject to cgt - Mark is correct.

Andrew Tokely

9:58 AM, 16th September 2016
About 4 years ago

As previously said CGT is based on what u paid for the property and what u sold it for. Mortgage does not come into it.

Michael Holmes

10:55 AM, 16th September 2016
About 4 years ago

Hi Jeanette,

Don't forget to include your CGT reliefs, both yours and your husband's/partner's if you hold the mortgage jointly. That is worth £11,000 or so, each.

Regards,

Mike Holmes

Jeanette Dowling

11:30 AM, 16th September 2016
About 4 years ago

Hi mark thank you for your help
Kind Regards
Jeanette

Mark Alexander

11:32 AM, 16th September 2016
About 4 years ago

Reply to the comment left by "Jeanette Dowling" at "16/09/2016 - 11:30":

You're welcome, sorry I couldn't provide you with better news.

1 2

Leave Comments

Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.

Forgotten your password?

OR

BECOME A MEMBER

Tenant demanding deposit back unfairly?

The Landlords Union

Become a Member, it's FREE

Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agents

Learn More