short lease and capital gains

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    short lease and capital gains

    I am just wondering what is the score with CGT on a property that hasn't risen in value due to a short lease? Is it an advantage of not extending a lease that you can avoid this tax?

    #2
    You are showing a lack of understanding of CGT system by asking if advantageous to avoid this tax.

    If you make a capital gain , you will be liable for CGT charged on the profit and first 11K of profit is not taxed and the extra may be taxed at 18% or 28%. This means you will keep atleast 72% or more of the total profit.

    If you look for ways to avoid CGT by making no profit, then you will be the loser. So seeking out and making profit is good for you.

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      #3
      As Gordon post advises- Don't let the tail wag the dog!

      A 50 year lease is a wasting asset when you sell only a proportion (according to a defined table ) of the cost can offset against the proceeds

      Comment


        #4
        Thanks SGC. I'd never heard of that before. Can you provide a link to the table?
        To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

        Comment


          #5
          http://www.legislation.gov.uk/ukpga/...dule/8/enacted

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