CGT & BTL Sale. Any ideas?

[Blanco92]

Mother has a BTL property, and lives (renting) elsewhere.

It is expected she will sell the BTL at some stage perhaps in 3yrs or so. The BTL property is expected to have tripled in value since she bought it approx 15yrs ago. So it is expected CGT will be due.

So thoughts are turning as to smart moves that could be done to reduce exposure to CGT. Any ideas?

One thing up for consideration is to transfer ownership from her personally to a company to reduce exposure to the higher rate of CGT. But maybe there are other options?

[LooneyTunes]

Blanco92 said:

One thing up for consideration is to transfer ownership from her personally to a company to reduce exposure to the higher rate of CGT. But maybe there are other options?

Transfer to company is no different to selling it to someone else… and you’d have the elevated SDLT to deal with as well.

You’re going to struggle to find any way to avoid CGT on it.

[PM3]

I have an idea. Pay the tax
Based on that assumption and more importantly if the plan to sell is a definite, I would strongly suggest that while these lunatics are in charge potentially the future tax is only likely to get worse. I see no reason why they will not adjust such taxes upward , so best get out now rather than at a later future tax rate ?
The anguish of paying some new loony rate ( 40 % ? ) of CGT would soon wash away any bitterness in paying at todays rates

[akirk]

If she is renting elsewhere is it her only house?
Would it not count therefore as a primary residence

No different to military who go abroad but rent out this or house at home etc

[MrBig]

Isn't the usual answer to boot out the tenants from the BTL and live in it for 6 months?

[PM3]

MrBig said:

Isn't the usual answer to boot out the tenants from the BTL and live in it for 6 months?

She would still pay the CGT based on the time it was not main residence. Now living in the house does not wash the absent period.

[Peterpetrole]

MrBig said:

Isn't the usual answer to boot out the tenants from the BTL and live in it for 6 months?

Would still be taxed on the uplift for the whole time she wasn't living there

[TownIdiot]

The only way of reducing the CGT is to live in it.

If that's not feasible then there isn't much you can do about it

[ThingsBehindTheSun]

TownIdiot said:

The only way of reducing the CGT is to live in it.

If that's not feasible then there isn't much you can do about it

This, why is she choosing to sell it, pay the CGT and continue renting? Would it not make more sense to just live in it instead?