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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13919
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I am thinking of selling my flat (2nd home which I own)

Customer Question

Hello, I am thinking of selling my flat (2nd home which I own) later this year. Currently the property is occupied by a tenant but I still have a residential mortgage as my lender accepted a consent to lease application.i bought my flat for 121,000 and it's currently worth 200,000. The tenancy is due up in 6 month and I am currently considering moving my mortgage across to a buy to let as the interest rate improves. If I sell my flat in the next 6-12 months will I have to pay capital gain tax? By moving to buy to let mortgage will I complicate the process of selling my flat and declaring the capital gain tax of the sold property? Does it make a different whether it's a residential mortgage or buy to let when it comes to selling it.?
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Thanks for your question The mortgage type has no bearing on whether capital gains arise, its all to do with what time it was not your main residence, so the act of transferring from a normal mortgage to buy to let will not change/complicate this factor.And assuming the buy to let loan will be in your sole name (as is the residential mortgage then this change of borrowing also has no capital gain implication due to refinancing) Let me know if I can assist further Thanks Sam