Surely I am not the only landlord worried about new EPC requirements?9:44 AM, 17th February 2021
About A week ago 125
My property was sold under a Compulsory Purchase Order (CPO). I was advised I could roll over the capital gains if I used the proceeds to buy another investment property. I have seen two accountants to try and find out if I need to inform the Inland revenue and if so how or I can just go ahead and use the proceed to acquire another property.
The property was bought under right buy scheme with value of £92k and after discount I paid £52k.in 2005. After purchase in 2005 I lived there with my family and moved out to live in another property in 2008. I rented the property. This year in August the compulsory purchase completed and I was paid £205000 as the value of the property and £15375 home loss payment. £14100 disturbance payment including stamp duty for replacing the peoperty plus solicitors and surveyor.s fees of £1020 and £3405 respectively.
What was I was not advised on is whether I need to inform the inland revenue and if so how.
Do I have to buy a property of the same value or can I buy of higher value mortgaging the the difference?
Is the home loss and disturbance payment part of capital gain calculation?
Thank you for any assistance.
From HMRC .Gov website click here:
If your land is compulsorily purchased, you are subject to Capital Gains Tax in the normal way, but there are some special rules. These:
Date of disposal
Where land is acquired by an authority exercising compulsory powers, the date of disposal is the time at which the compensation for the acquisition is agreed, or otherwise determined. Any variation on appeal is ignored.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More