CGT

[parm]

Can anyone advise, I have a second property (noy my PPR) which was let. I am now contemplating on selling and purchasing another property. reference to the capital gain if any my I add (taper relief etc) can I roll it over to the next propety??

I understand that there are various other allowances, is there a webiste on CGT calculator etc I can go online, apart from the HMCR nightmare.
:?:

 

[Joyous]

Hi Parm

A very "broad brush" answer coming up here.

If at any point the property was your PPR then the gain attributable to the period that you lived in the property and the last 36 months of ownership are exempt from PPR.

Taper relief reduces the amount of the gain that is chargeable to tax and is applied after all other reliefs have been used up. Basically, the longer you own the house (subject to a 10 year maximum) the higher the rate of taper relief. A property that has been let residentially is normally considered a non business asset and will qualify for a lower rate of taper relief than a business asset.

It probably won't be possible to roll over the gain on this sale to a new property. Rollover relief is only available to assets used for the purpose of trade so a residential let is unlikely to qualify.

Finally you have an annual exemption of £8,200 (£8500 in 2005-6)so any gains (after all reliefs) up to this amount are tax free.

I stress that this a very generalised answer. As with all things in life you get what you pay for so for specific advice relevant to your situation I'd suggest speaking to an accountant.

Regards

Joy

 

[parm]

Joy,

Thank you for your posting, I found you comments helpful.

Regards

Parm

PS I note you are based in Ilford.. Ironically the property is also there.