Capital Gains Tax - Putting a brake on property sales ???
I wonder how many landlords have decided not to sell a property because of the hefty CGT liability on the gains ?
I know there may be lots of reasons why a landlord may with to sell a property. It could be that they wish to retire or leave the lettings market and put the money away as a nest-egg or retirement fund. In that case it is perhaps not unreasonable that the government should want a slice of the profits - whether 28% is a reasonable amount is debatable.
However, what if you want to sell a property because you want to move away from the area and invest in another property close to where you intend to live. It seems that there is no way of avoiding the CGT on the sale, whatever the reason. If it were a premises used for business then there may be the opportunity of deferring any gain if you intend to buy another business premises. Should it not be the same for landlords ? If they (as in my case) wanted to sell a few properties I let in order to raise funds for buying another property/properties in another part of the country would it not be reasonable to have the deferral ?
Are there any others who have had to keep properties because of CGT ?
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