Reducing CGT on sale of a BTL, any way to do this?

[philcray]

As per the title, I am in the process of selling a BTL flat I have had for a few years. There will not be a vast profit but obviously keen to minimise any tax bill if at all possible. The flat is in my wife and my names so understand I can take off 2 batches of CGA (£11,700 x 2) plus original buying costs and selling costs,

Is there anything else or any other way of reducing the bill? Any feedback appreciated.

Many thanks

Phil

[The Leaper]

2 x £12,000 for 2019/20

R

[uknick]

Any capital costs, i.e. money spent on improvements? Did you ever live there as your main residence?

[philcray]

Never lived there, have not made any improvements as such, just on-going general maintenance.

[Eric Mc]

All the original ancillary costs incurred when buying the property are added to the original cost (legal fees, stamp duty etc)

All ancillary costs incurred on the sale of the property (agent's fees, advertising etc) are deducted from the gain.

[philcray]

Thanks for the input

[BassFlyer]

Depending on your risk profile etc you could look at reinvesting proceeds in things like EIS etc. Not for the faint hearted though.

[Helicopter123]

BassFlyer said:

Depending on your risk profile etc you could look at reinvesting proceeds in things like EIS etc. Not for the faint hearted though.

Not the whole sale proceeds though, just the capital gain.

[Triple7]

You have £40,000 letting relief available....plus the last 18 months of ownership free of CGT.

Go on the Rev n Customs website,....

[kurt535]

Triple7 said:

You have £40,000 letting relief available....plus the last 18 months of ownership free of CGT.

Go on the Rev n Customs website,....

good post

[S6PNJ]

Triple7 said:

You have £40,000 letting relief available....plus the last 18 months of ownership free of CGT.

Go on the Rev n Customs website,....

Isn't that for only if you've lived there, ie it was your 'own' home at some point?

[uknick]

S6PNJ said:

Isn't that for only if you've lived there, ie it was your 'own' home at some point?

For the letting relief, you're correct, so not valid in OP's case.

[Alpinestars]

Triple7 said:

You have £40,000 letting relief available....plus the last 18 months of ownership free of CGT.

Go on the Rev n Customs website,....

Not if it’s not been his/her PPR.

[Whistle]

If i moved into one of my BTL how long would I have to live there to be able to access the £40k capital gains relief?

[Alpinestars]

Whistle said:

If i moved into one of my BTL how long would I have to live there to be able to access the £40k capital gains relief?

There is no statutory time. It’s a matter of facts. HMRC will look at facts including intention and the nature, quality, length and circumstances of occupation.

You can make an election to make something your PPR, but again be aware of the above. And if you make the election, your other place won’t be your PPR, but if you let that whilst living in the BTL, you will get lettings relief on both.

You should note that lettings relief is capped at £40k, which means you might not get the whole £40k.

[uknick]

Whistle said:

If i moved into one of my BTL how long would I have to live there to be able to access the £40k capital gains relief?

I think you need to read the rules and then work out some what/if scenarios to see what suits you best.

https://www.gov.uk/government/publications/private...

Letting Relief
If you only get partial relief because you have let some or all of your dwelling house as residential accommodation, you may be entitled to a further relief. This further relief is due where:

you sell a dwelling house which is, or has been, your only or main residence, and

part or all of it has at some time in your period of ownership been let as residential accommodation

The amount of relief is the lowest of:

+ the amount of Private Residence Relief already calculated
+ £40,000
+ the amount of any chargeable gain you make because of the letting

[tescorank]

Capital Gains Tax For Non-residents. Historically, landlords with rental properties who are non-resident for tax purposes and who have sold properties are exempt from capital gains so long as the disposal takes place during a period of at least five years throughout which the seller is non-resident

[Alpinestars]

tescorank said:

Capital Gains Tax For Non-residents. Historically, landlords with rental properties who are non-resident for tax purposes and who have sold properties are exempt from capital gains so long as the disposal takes place during a period of at least five years throughout which the seller is non-resident

Doesn’t work.

[tescorank]

Try Portugal

[Alpinestars]

tescorank said:

Try Portugal

Try somewhere even nicer if you like - but still won’t work.