Transfering equity from BTL property

[sam_vfr]

Wondering if someone could help me with the following.

I have 2 properties, 1 House that i rent out with a BTL mortgage and the other house i live in which has a normal residential mortgage.

If i were to sell the house that is currently rented out, can i transfer the equity over to pay off a substancial amout of my residential mortgage?

If so, would there be any tax due on this?

Thanks

Sam

[anonymous-user]

sam_vfr said:

If i were to sell the house that is currently rented out, can i transfer the equity over to pay off a substancial amout of my residential mortgage?

In other words 'Can I pay my mortgage off with cash from my bank account?'. Yes of course you can.

Tax wise, there may/wil be capital gains tax due.

[N111BJG]

Any profit, effectively the increase in value less any permitted expense will be taxed as a capital gain, which in themselves are subject to annual allowances

Its all explained on the HMRC website

[Mandat]

Also, be aware of any early redemption limits or charges on your current residential mortgage.

[JapanRed]

1) Yes you can sell the BTL. Any profits on the BTL may be subject to tax though.
2) Yes as long as you have no early repayment charge on current mortgage.