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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15944
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I have a flat(not my resident home) which is mortgage free

Resolved Question:

I have a flat(not my resident home) which is mortgage free and currently being rented out. I have declared my rental income. Now, I am thinking of selling it and use the money to buy a another property to rent out instead. Do I still have to pay capital gain tax since all my money will be reinvest back into the new property?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

I'm afraid that you cannot defer the potential CGT liability from the dale of the first property by reinvesting in another property you intend to let unless the residential property you are selling is a furnished holiday let and the residential property that you intend to buy will also be a furnished holiday let. Take a look here for information on business asset rollover relief.

I hope this clarifies your situation but let me know if you have any further questions.
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