Selling one BTL, buying another - two Qs

[Christine]

Hello,
Hope you can help.
I’ve just retired and I own a BTL with my 92 year old mum - had it for years. Problem is, I’ve moved (taken mum with me) too far away to manage it, and I’d like to sell the BTL and buy another nearer to my new home.
Would I have to pay CGT on my BTL if I buy another property with the money?
My other dilemma is whether a new BTL should be in joint names with mum again, or not?
Thank you.

[Jholm]

Yes, you would have CGT to pay (assuming a gain in excess of the annual exemption). Other relifs may be available for either of you depending on whether you lived there at some point.

Re: new property. Would it be bought outright? Naturally, her share of the house could form part of her estate for IHT purposes. This may or may not be a problem depending on what other assets she has.

[Christine]

Thank you Jholm for your response. Not the answer I’d hoped for but I suppose I shouldn’t grumble. We’ve had the property for over 20 years and neither of us has lived in it, it has been a good investment, providing regular income. There’ll be a hefty CGT bill to consider when looking at potential BTLs closer to home.
If i/we were to go ahead, the new property would be bought outright. Mum’s assets, including her share of the BTL (which we bought outright) are borderline IHT threshold, so I’m guessing if property prices increase much more, that would bring IHT problems.

[Jholm]

In your instance, it is probably advisable to appoint a tax advisor to discuss the CGT and IHT elements, particularly to weigh up the 20% tax rate for income generated (assuming that rate) against the potential increase to assets charged at 40% in the future death estate.

[Christine]

Yes, sound advice. You've been a great help. Thank you so much.