Would this work to cut CGT on a BTL?

[Peterpetrole]

For the usual reasons I'd be interested in offloading my BTL but I hate the idea of paying CGT.

It's worth £210,000 up from £70,000.

I have cash in the bank from another house sale that means I could pay all my salary into my pension for quite a while. I'd still be getting £720 a month from the BTL.

If I paid all my salary (for tax year 26/27 into my pension (and can I do that with the £720 as well?) could I sell my BTL during that tax year and I would be classed as having zero / minimal income?

Would that cut the CGT bill a lot, I'm a higher rate taxpayer?

Cheers

[muscatdxb]

I don’t think CGT is affected at all by employment income. It would still be due.

Could you not borrow against it? I think that’s what I’ll do as I get older and let my heirs deal with the tax bills.

[alscar]

CGT is treated separately to Income tax.
You could reduce the CGT by either having CG losses to offset or by investing freshly in potential tax relief schemes.

[alscar]

.. such as EIS.

[Tim330]

alscar said:

CGT is treated separately to Income tax.
You could reduce the CGT by either having CG losses to offset or by investing freshly in potential tax relief schemes.

https://www.gov.uk/capital-gains-tax/rates

If the OP can salary sacrifice his pension to be a lower rate taxpayer he will save won't he?

[alscar]

Tim330 said:

https://www.gov.uk/capital-gains-tax/rates

If the OP can salary sacrifice his pension to be a lower rate taxpayer he will save won't he?

Don’t know. He could transfer the asset free to his wife if applicable but she will then have the CGT tax to pay anyway so it only defers it.
Allowances are so small these days that even modest gains get hit quickly.