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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15950
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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My client has a gain of £73292 from sale of property and has

Resolved Question:

My client has a gain of £73292 from sale of property and has bought 3 new properties totalling £401958 how much of the original gain is liable to capital gains tax?
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi.

What type of properties are the one that has been sold and the three that have been bought? Was the property that has been sold ever your client's main home or a furnished holiday let? Are any of the newly acquired properties to be let as furnished holiday lets?

Customer: replied 1 year ago.
a far as I know the original house was rented out to tenants as are the three new houses
Expert:  TonyTax replied 1 year ago.

Thanks.

If the house that has been sold has only ever been a buy to let property and the three new houses are also buy to let properties, then you cannot rollover the gain and defer CGT so all of the gain is taxable subject to the annual CGT exemption. The first £11,000 of net gains made in 2015/16 will be tax free and the first £11,100 of net gains made in 2016/17 will be tax free.

I hope this helps but let me know if you have any further questions.

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Customer: replied 1 year ago.
Thank you Tony that's what I thought but needed to double check
Expert:  TonyTax replied 1 year ago.

Thanks.