Converting BTL to Holiday Cottage

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    Converting BTL to Holiday Cottage

    If a property run as a BTL for many years is converted to holiday accommodation does the lower CGT rate apply immediately. If so , if the property is then sold a few years later is only the lower rate of CGT paid?

    #2
    Is the property subject to a Buy to Let mortgage ?

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      #3
      The normal CGT rate is 18% or 28% on capital gains calculated after sale of the asset.

      There is a special 10% rate for retiring business persons after disposal of property assets which were part of the business . You need to consult a tax accountant to ascertain if you can qualify as a retiring business person.

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        #4
        The property is mortgage free.

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          #5
          Holiday letting and property investment are two different types of business - your property investment business will cease when you start the holiday let business.

          You'd need an accountant to advise how the two businesses transition for tax purposes.

          However, holiday lets have criteria that have to be met to satisfy tax reliefs. Days available and let in the tax year, for example.
          The business has to be designed to make a profit, not simply not pay some tax.
          When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
          Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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