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TaxRobin
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I have sold a second property and know i will have to pay CGT

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I have sold a second property and know i will have to pay CGT and have no mortgage on this house but if I use the proceeds to pay off my existing mortgage on my first house can i defer payment until that property is sold
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello,
Unfortunately using the proceeds to pay down or pay off your mortgage on your first home would not afford any relief from CGT on the sale.
If you sell or dispose of a property that does not qualify for Private Residence Relief you must work out the gain or loss.
There may be some Capital Gains Tax reliefs you can use if your property has been used for business purposes (such as letting).
If you did not, you would pay CGT on the profit of the sell.

For assistance in working out your gain you will find the following HMRC page very helpful:
http://www.hmrc.gov.uk/cgt/property/calc-cgt.htm
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