CGT if you sell then buy another property?

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    CGT if you sell then buy another property?

    I'd like to sell my buy-to-let flat and buy either a) another buy-to-let flat or b) a holiday home to rent out.
    How can I avoid paying CGT on the sale of my current property in these two cases?
    Thanks in advance for your help.
    S

    #2
    Sell it for the same as you paid for it.
    To save them chiming in, JPKeates, Theartfullodger, Boletus, Mindthegap, Macromia, Holy Cow & Ted.E.Bear think the opposite of me on almost every subject.

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      #3
      If you are hoping for some form of rollover relief, unfortunately, there is none for non-trade assets.

      I assume the flat has never been your PPR.

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        #4
        The liability to pay CGT depends on the amount of capital gain ( profit ! ) you make after the sale of BTL property. It does not depend on what you buy with the proceeds from sale.

        The Taxman's method of calculating your profit is taking the sales proceeds and subtract the original buying costs including all legal and conveyancing costs but ignoring any mortgage loan. If the profit is less than 11,000 pounds which is the CGT personal allowance, there is no tax to pay. Any profit over the personal allowance is chargeable at 18% or higher at 28% ( if you are paying 40% rate on salary income).

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