This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Moveing profit into a new property.

Mike123
Posts:1
Joined:Wed Aug 06, 2008 3:03 pm

Postby Mike123 » Sat Apr 05, 2003 7:16 am

I am currently selling 5 properties with the profit being around 200k. Can i then reinvest this amount into 1 proprety vlaued at 1m and not be liable for any tax until this property is sold.

Thanks

Mike.

Neale
Posts:39
Joined:Wed Aug 06, 2008 3:02 pm

Postby Neale » Sun Apr 06, 2003 2:03 pm

http://www.inlandrevenue.gov.uk/pdfs/20 ... /ir290.pdf

Provides details of rollover relief. I doubt it applies to residential property investments.Take advice.

neale@coules.com

demetris
Posts:95
Joined:Wed Aug 06, 2008 2:18 pm

Postby demetris » Mon Apr 07, 2003 12:42 am

Dear Mike,
tax law states that any capital gain can be deferred and thus tax postponed on certain cases only and for specific qualifying assets- investment properties do not fall within this category.

Nevertheless, I agree with Neale that it is adviceable before you make any decisions that you obtain professional advice as your business might fall into the definition of "trade" as opposed to investment.

I hope this helps
Demetris Savva BA FCCA
http://www.tax-accounting-london.info
FREE tax and business advice newsletters and Special Report On How to Save tax, written in plain language and automatically sent to you when you subscribe to the Newsletters.


Return to “Capital Gains Tax, CGT”