McDonnell’s distorted and dangerous version of Right to Buy9:01 AM, 5th September 2019
About 2 weeks ago 35
I would like to sell a couple of long term buy to let properties I own in order to purchase another income producing property in another part of the country (Somerset) where I wish to retire too.
As I understand it even though I intend to use the proceeds of the sale of my properties towards another similar property I will still have to take the 28% CGT hit.
This will make it untenable. I did get excited last year as I found a site advising that you would not have to pay the CGT if you purchased a similar property within 6 months, only to find out this was a Canadian site !
As far as I can see this CGT liability makes it very difficult for any landlord to ‘upgrade’ his portfolio by selling one or more properties in order to purchase another property, either in another area or perhaps a larger property.
Had the CGT rate been more reasonable at 18% I could probably live with this, but at 28% it seems that I will have to sit tight and carry on as is, as there is no way I am going to accept having to loose over 50k in CGT just to relocate.
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