Capital Gains Tax

[ladymcbeth]

I own a property that is rented out. If I sell it and buy another property for the same price, am I liable to pay CGT on the sale of the first property?

[Peter D]

Yes the disposal will attract CGT. Have you lived in the property at any time. Regards Peter

[ladymcbeth]

Hi there Peter. Thanks for the answer. I suppose the only way to look at it is that if I sell this one now and buy another for the same price at least the CGT will have been paid on the profit element on the first house so will therefore be less when/if I sell the one the other one as the buy/sell price is the same.
And NO I have never lived in the property, purely bought for rental income.

[Peter D]

MAy I ask why you want to sell it. Are you moving the property to a different area or have you been made a good offer. Regards Peter

[ladymcbeth]

Peter...sorry for not getting back to you sooner. This is the first time back on the site.

The reason it is being sold is because the neighbour wants to buy it and is prepared to pay a premium for it. He has wanted to buy it for a long time and he and his family were a bit of a nuisance with the previous tenant.

Also am buying a better property in a nicer area with a tenant in it for the same money from an acquaintance who wants to sell so seems like a good idea. Also as neither property is being 'marketed' and both have Energy Performance Certificates, do no require HIP.

Thank you again for posting a reply. Ann