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Where Taxpayers and Advisers Meet

CGT on main residence I've also rented out

Green10
Posts:2
Joined:Sat Jan 18, 2020 10:55 pm
CGT on main residence I've also rented out

Postby Green10 » Sat Jan 18, 2020 11:11 pm

Hi all,

I've trawled through a few pages but haven't come across my scenario, so any assistance is appreciated.

Property A - Purchased as my home in 2006. During my ownership I have rented out this property for approximately 4yrs 8mnths. I have been back living in the property since 2018. Capital gain if sold approx £125k

Property B - Purchased in 2010 as a BTL. Always been let and I have never lived in this property.

If I sell property A and use most of the capital gain to pay off the majority of the mortgage on property B, does this defer my CGT liability on property A?

I believe my CGT liability before 6th April is minimal, but my concern is after 6th April......If by using the gain from A to invest in B isn't classed as reinvesting, I believe my CGT could be around £10k or more!

I'd like to think I can sell property A before the 6th April, but what if?? And is the 6th a 'fixed' date regardless of where u are in the selling process?

Thank you

AdamS93
Posts:268
Joined:Tue Sep 26, 2017 6:28 pm

Re: CGT on main residence I've also rented out

Postby AdamS93 » Sun Jan 19, 2020 5:54 pm

You cannot rollover the gain in the situation to describe.

If you sell property A before 5th April 2020, you will benefit from letting relief in addition to PPR so I would imagine that there would be no CGT to pay.

If you sell after 5th April, then you will lose letting relief and will probably have some CGT to pay.

You would be best advised to get some professional advice as you could end up paying more CGT than you need to...

Green10
Posts:2
Joined:Sat Jan 18, 2020 10:55 pm

Re: CGT on main residence I've also rented out

Postby Green10 » Mon Jan 20, 2020 7:08 pm

Thank you for your comments,

Does anyone know about the 6th being a hard date regardless of where the property sale is in the process?

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: CGT on main residence I've also rented out

Postby AGoodman » Thu Jan 23, 2020 1:47 pm

The vital date is almost certainly the date you make an unconditional contract (i.e. exchange, not completion). If you exchange a minute after midnight, you're in the new regime.


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