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What rate of capital gains tax will apply to the sale of let property?
A client has just posed a question on property disposals. He owns six properties that he lets out and the rent from these provide the whole of his income.
My client would like to sell one of the properties and use the sale proceeds to reinvest in another more expensive property. He hopes that the new property will provide a higher level of rent.
The client has asked for advice on the capital gains tax position on sale. Is it too much to hope that he might be eligible for rollover relief? His ‘friend down the pub’ has mentioned this to him but doesn’t rollover relief have to be in respect of a trade rather than a property rental business? My view would be that what he owns should be classified as investment property.
My initial response was to say there was no entitlement to rollover relief and...
