I will shortly have some capital freed up from the sale of a PPR, and I am thinking of reinvesting in property (which will not be a PPR).
The idea would be to invest, allow the property to appreciate (rising market), or develope it to create a rise - and then sell.
The capital freed up would then be ploughed into the next property/properties.
I have heard of a scheme called "bed and breakfasting" for shares, which allows CGT to be deferred. As far as I can remember, if the profits are reinvested in the same year, no CGT is due. The CGT is only paid when the assets are "realised", i.e. turned into cash.
If this is ok for houses/flats, this would be handy as I could build up a property portfolio, making sure any gains were re-invested in the same tax year. I could then liquidate the property in stages during retirement, acting as a sort of pension. And liquidating it in small enough increments e.g. £40k pa, so that what with CGT exemptions, and income tax thresholds, no higher rate tax gets paid....
Is this feasible/legal ?
Many thanks,
Conor Rafferty
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