Paying capital gains tax on the proceeds from a sale even if money is reinvested

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Q. I have owned and rented out a residential property for the last ten years, which I am now considering selling. I will use the proceeds to purchase another rental property. Will I have to pay capital gains tax on the proceeds from the sale even if all the money is reinvested in another property that is also to be let?

A. Yes, you will be liable to capital gains tax on the gain from the sale, even though you will be reinvesting the money in another property that is also to be let. Rollover relief is available for residential investment property only in relation to qualifying furnished holiday lettings, and for compulsory purchases. If your property is in the UK you will need to report and pay any capital gains tax within 30 days of completing the sale.

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Added By: Sharon Worger on 10th Jul 2020 - 14:02
Number of Views: 36
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