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Where Taxpayers and Advisers Meet

CGT One Year Rule, I am in Shock.

someone
Posts: 384
Joined: Mon Feb 13, 2017 10:09 am

Re: CGT One Year Rule, I am in Shock.

Postby someone » Tue Aug 06, 2019 12:08 pm

https://www.rossmartin.co.uk/sme-tax-news/1091-letting-qualifies-as-business

The UTT decided that the FTT had erred in law and decided that ordinary property letting:

Is not a trading activity - Griffiths v Jackson; Grifiths v Pearmain 56 TC 583.


I think this means that S152 et al do not apply.

wamstax
Posts: 1869
Joined: Wed Aug 06, 2008 3:39 pm
Location: Operate Nationally but based in Aberdeen
Contact:

Re: CGT One Year Rule, I am in Shock.

Postby wamstax » Tue Aug 06, 2019 1:44 pm

Read here and unfortunately apart from FURNISHED HOLIDAY LETTING the simple letting of domestic property is not a trade and therefore you are not a trader ( in relation to the simple letting) and you cannot get S152 deferral relief

See
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg60260
regards and hope this helps
http://www.wamstaxltd.com
Operates Nationally with competitive costs
and email and phone contact can be obtained from website

pawncob
Posts: 4386
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: CGT One Year Rule, I am in Shock.

Postby pawncob » Tue Aug 06, 2019 3:50 pm

That relates to business assets. Your property doesn't qualify.
With a pinch of salt take what I say, but don't exceed your RDA

ohdearme
Posts: 10
Joined: Mon May 15, 2017 12:36 pm

Re: CGT One Year Rule, I am in Shock.

Postby ohdearme » Thu Oct 24, 2019 11:46 am

Hello All

Thank for your help so far.

Trying to get my head around this. It seems that under Sec 22 and 23 of the tcga 1992 I coudl reduce the chargeable gain if I reinvest the proceeds of the sale.

Can any kind person put this in simple language for me please/

pawncob
Posts: 4386
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: CGT One Year Rule, I am in Shock.

Postby pawncob » Thu Oct 24, 2019 12:08 pm

Are you sure you mean ss 22 and 23?
With a pinch of salt take what I say, but don't exceed your RDA

AnthonyR
Posts: 302
Joined: Wed Feb 08, 2017 2:33 pm

Re: CGT One Year Rule, I am in Shock.

Postby AnthonyR » Fri Nov 08, 2019 11:47 am

Just following on from what the others have said, there is no rollover/holdover available on the sale of a single residential property. Without meaning to be rude, you can stop researching.

The only practical option you have available to defer the tax would be to reinvest the proceeds into SEIS (which would give you a small exemption as well) or EIS qualifying shares which would allow you to defer the tax until you sell these shares. HOWEVER THESE ARE HIGH RISK INVESTMENTS AND PROBABLY COMPLETELY INAPPROPRIATE FOR YOUR RETIREMENT PLANNING. So please don't do this and risk losing all your money to save £100k.
Anthony Rogers LLB CTA TEP
Fusion Partners LLP
anthony@fusionpartners.co.uk


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