CGT From BTL portfolio

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    CGT From BTL portfolio

    I ve decided to give up on the BTL uk market - I m getting too old for this all and frankly want to move abroad

    I have had a property which was bought for 200K - It is now worth 500K.

    I realise that CGT will be due on the 300k which is a lot to stomach. I know I have a 12K CGT allowance but that i not much

    Can I gift this property to my niece or sell it at an undervalue - There seems to be rollover relief but I m not sure i understood it.

    You might think 300k pnl is a lot but inflation adjusted it is not that much

    Thanks to all for serious answers .

    #2
    Originally posted by ChloeRadshaw View Post
    Can I gift this property to my niece or sell it at an undervalue.
    CGT would still be due on the market value of the property.

    Comment


      #3
      CGT is payable after disposal by sale or by gifting ( assuming no mortgage ) ..

      Assuming you are paying tax at 40% rate on your income, the capital gains is taxed at 28% rate.

      For capital gain of £300K less £12,300 capital gains personal allowance = £287,700 charged at 28% = £80,556 tax bill.

      Comment


        #4
        It seems you are planning to leave UK having paid over £80000-Whitehall will be delighted.The good news is you take about £410000 with you

        Comment


          #5
          You could re mortgage the property. Enjoy the proceeds, pay someone to manage it and pass on any remaining equity to your niece free of CGT or inheritance tax (depending on your full situation).

          Depends which is more important to you, getting out of BTL entirely or saving tax.

          Comment


            #6
            Sell when you become non-resident... only gains that accrue after 5th April 2015 will be taxable. There are certain anti-avoidance provisions such as temporary absences abroad, so seek professional advice from a qualified tax adviser.

            Comment


              #7
              Originally posted by ChloeRadshaw View Post
              Can I gift this property to my niece or sell it at an undervalue - There seems to be rollover relief but I m not sure i understood it..
              Rollover relief doesn't apply here.

              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).

              Comment


                #8
                Originally posted by Sibbers123 View Post
                Sell when you become non-resident... only gains that accrue after 5th April 2015 will be taxable. There are certain anti-avoidance provisions such as temporary absences abroad, so seek professional advice from a qualified tax adviser.
                Thank you. This is exactly what I am doing and I asked specific question about the five year outside Uk tax rule and whether that starts from day of sale or five years from date of departure

                Comment

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