Crystal Ball anyone ?
My flat in 2001 cost £190k. It has been rented most of the last 12 years and yields about £900pcm. I still owe £40k on a variable rate interest-only mortgage which is due in August 2015. Market value is £300k.
Keeping the flat was meant to provide retirement income instead of committing to a pension pot and annuity. Now the rules have changed, but you still can’t put a residence into a SIPP (yet) and any transfer would realise the gain … or would it?
Plan A is to pay it off because I have a much-reduced income and am loathe to re-mortgage on expensive buy-to-let terms. An endowment is in place to do this.
What are the alternatives – to mitigate what is a growing CGT liability, after PRR and Lettings Relief the bill would be massive. Is there a way of spreading out the realisation of the capital gain?
The best way to cheat CGT is to die of course, which I fully intend to do some day, so there is a strong argument for keeping the flat. Oh to be rid of leasehold problems though!
New to this and I’m sure I need professional advice, but I’m never sure who to ask.
Many thanks
Mark
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Am I converting my new property into an HMO?
Member Since April 2014 - Comments: 5
3:07 PM, 5th February 2015, About 12 years ago
Reply to the comment left by “Les Charneca” at “05/02/2015 – 12:42“:
Les
In summary, post 5 April 2015 gains are now subject to capital gains tax for non-residents.
Member Since October 2013 - Comments: 31
5:52 AM, 7th February 2015, About 12 years ago
Reply to the comment left by “Les Charneca” at “05/02/2015 – 12:42“:
To the same as someone who is resident !