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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4098
Experience:  FCCA FCMA CGMA ACIS
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I own 35 BTL properties, I have lived in each one initially.

Customer Question

I own 35 BTL properties, I have lived in each one initially. BTL is my main business, it is ran through a limited company for which I own 50% of shares but I own each property, and I am hands on with. If I try to sell one property per year can I reduce my CGT liability?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. You have an Annual Exempt Amount (AEA), currently 11.1K non cumulative, in every tax year to offset any CGT liability. Thus your plan to sell off one property per [tax] year would enable you to maximise your AEA entitlement and reduce you exposure to CGT. The property you initially occupied as your sole or main domestic residence would be entitled to Private Residence Relief (PRR) which is at 100% of CGT due. This would be given proportionately depending on the let period to reflect the latter. In addition you would be entitled to Lettings Relief (LR) up to to 40K to offset CGT. I do hope that you have found my reply of assistance.
Customer: replied 1 year ago.
Is the capital gain from when I bought a property or from a date in 2015?If I emigrated to Australia would I avoid CGT if I sold all the properties and did not return to the UK for 5 years?
Expert:  bigduckontax replied 1 year ago.
From when you bought the property; if you emigrate to Australia and spend 5 whole tax years outside the UK then the gain is still taxable, but from an April 2015 valuation. If you do go do not forget to complete a Form P85 when you go so HMRC can classify you as non resident. Oz does not have a Capital Gains Tax as such, all such gains world wide being subject to Australian Income Tax. Under the Double Taxation Treaty between the UK and Australia this tax cannot be levied in both jurisdictions. This is achieved by means of tax credits, any tax paid in one country being allowed against the liability in the other. The Treaty does not, however, protect your from differences in tax rates. In my earlier answer I mentioned LR. This would, of course apply to any BTL property you lived in before or after the letting period.