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Where Taxpayers and Advisers Meet

Capital Gains Tax - Selling and Buying property - rollover

skray
Posts:51
Joined:Mon Oct 29, 2012 5:01 pm
Capital Gains Tax - Selling and Buying property - rollover

Postby skray » Wed May 04, 2022 2:15 pm

Hi
I have a property overseas that was constructed in the '90s. This property is becoming difficult to maintain so I am considering selling it. As I will be selling at current market price the proceeds of the sale would usually attract Capital Gains tax in the UK (subject to any relief available due to double taxation treaty).

I would like to ask if I use the money to buy another property immediately, can I avoid having to pay capital gains tax. (Essentially I guess I am asking if any "rollover" type of relief is available when buying property with personal money).

Thanks in advance.
Regards

Jholm
Posts:283
Joined:Mon Mar 11, 2019 4:22 pm

Re: Capital Gains Tax - Selling and Buying property - rollover

Postby Jholm » Wed May 04, 2022 3:48 pm

Probably not but what is the property? Need more info to comment.

Rollover relief is available on business assets so unlikely if it's just a bog standard residential rental property, which are deemed investments, not trades.

skray
Posts:51
Joined:Mon Oct 29, 2012 5:01 pm

Re: Capital Gains Tax - Selling and Buying property - rollover

Postby skray » Wed May 04, 2022 6:37 pm

Hi Jholm
Its a flat. The land belonged to my brother and myself - on which we ourselves constructed a 3 storied building with 2 flats on each floor along with our cousins, and I own one of these flats but I do not live there presently. It was not purchased from a developer. It is usually rented out but currently unoccupied because of Covid. Current my brother looks after his and my flats - but we are getting old, and thinking of selling off and buy a property elsewhere where property management services will be available.
I live in the UK but do not own a property here, I live in a rented accommodation.
We may have to sell it off anyway - but I was wondering if there is a way of mitigating Capital Gains Tax by using the money to buy a new property or in some form of investments.

Regards

Jholm
Posts:283
Joined:Mon Mar 11, 2019 4:22 pm

Re: Capital Gains Tax - Selling and Buying property - rollover

Postby Jholm » Thu May 05, 2022 8:36 am

Alas, my friend


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