Let’s club together for our BTL sell-offs?

I could see this coming in 2017.
I remortgaged with the intention of letting my house in London, and using the equity to buy a resi elsewhere. Then the true horror of S24 hit me. Mortgages of £950k, starting rental income of £36k (and a lot more now) on that property plus rental income of £30k elsewhere, and salary in the higher rate tax bracket... Plus, when I decided to sell after, say, 5 years, CGT on £1.8m with fewer and fewer reliefs.
I decided not to let my house, and didn't buy elsewhere. Instead, I invested the equity I had released, and earned more, with zero hassle. I then sold my flat ASAP, took what reliefs were available, and invested that [significant] equity. That reduced the impact of S24. I then sold my home with even more equity and with no CGT liability in 2019.
I've now retired and in the 20% tax bracket, and will exit the PRS completely this year [having removed 10 beds from the rental market].
Government and the likes of shelter need to appreciate landlords have choice when it comes to what they do with 'THEIR' property and their money!

So you have made a £900,000 profit after tax, and you're still unhappy!

Ingress money don't make you happy.....many btl's are gonna walk away with nothing if inflation (and rates) doesn't drop soon.

Reply to the comment left by TrevL at 05/05/2023 - 13:59
I didn't say I was unhappy making a profit. But I am unhappy with how the government and shelter et al are contriving to destroy the PRS as an 'asset class' for all but the largest landlords.

One way to avoid completely the CGT bill - a bit drastic. I think this might work.
Make your £1.4 million house your main home, your principal residence and move in to it and live there. Change all utilities in to your name, have redirection of mail from your old address.
Seek legal/account advice but I would say stay in house for a minimum of 12 months and then put it on the market and sell it.
If HMRC query reason for sale make excuse like too big for us, too much traffic, don't like the area etc.
Of course you would have rented out your old house in the meantime. Where would you move to after you had sold your £1.4 million house. Back to your old house of course.

Reply to the comment left by Dennis Forrest at 05/05/2023 - 15:02
Won't work... unless you want to take a chance HMRC doesnt know you've been letting. When I sold my flat, I had to provide the CGT calculations, showing dates I lived there, when it had been let, purchase/sale prices, additional costs e.g. new bath/kitchen. The reliefs were calculated on those dates, but I still had to pay CGT.

Reply to the comment left by Dennis Forrest at 05/05/2023 - 15:02
You only get private residential property relief for the time you are living in your now ex rental property.
When you come to move back into your old main residence and sell that then there's tax to pay on the rental element IF property prices have gone up.
The buggers get you most ways 🙁

I realise that if you had bought a house and lived in it for 5 years and then rented it for 5 years and then sold it. The gain would be only 4.25 years growth I think because you get the five years plus I think an extra 9 months PRR.
However if the situation is reversed and you buy it and rent it for 5 years first then lived in it for 5 years ans your principal residence then I thought no CGT would be payable?
From the Property Buying Company website:
FYI: Luckily, for the majority of homeowners, CGT does NOT apply to the sale of their home. You're only liable to pay CGT on any property that isn't your primary place of residence - i.e. your main home where you have lived for at least 2 years. So it's those with second homes and Buy To Let portfolios who really need to keep their ears open.

Reply to the comment left by Dennis Forrest at 05/05/2023 - 15:21
That's not 100% accurate. I lived in my flat for 3 years then rented for 10.

Reply to the comment left by NewYorkie at 05/05/2023 - 15:28I am looking at the reverse situation. If you had rented it for 10 years first and then lived in it for 3 years and then sold it.

Reply to the comment left by Dennis Forrest at 05/05/2023 - 15:30
I don't see how you can avoid paying CGT.