Readers’ forum: Is relief available on the sale of rental property?

My clients a couple jointly own seven residential properties in the UK. One of these is their main residence while the remaining six are let out on long-term residential tenancies. The husband also works part-time as a consultant earning £25 000 annually. The couple is considering selling one of the rental properties currently valued at £350 000 to raise capital for upgrading the remaining rental portfolio.

The property was purchased in 2012 for £180 000 and has been let out continuously since then. They have incurred £15 000 in allowable capital improvements over the years. They are unsure about the tax implications of the sale and how best to structure it.

Can Taxation readers weigh in on this and confirm whether the sale of the property is likely to affect their overall tax position taking into account the husband’s income? Are there any...