CGT

Sale of Buy to Let

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Please totally lost now everyone seems to have a different view point and getting through to HMRC is'nt easy! When calculating CGT on a mortgaged buy to let is the outstanding mortgage owned to the lender, a deducted cost before calculating CGT payable, thanks 

Replies (13)

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By johngroganjga
26th May 2021 08:36

Of course not. The amount outstanding on any mortgage, or even if there is one, has no bearing on the CGT liability.

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Stepurhan
By stepurhan
26th May 2021 09:01

I would intersted in knowing what "everyone" told you it could be a deductible expense.

Were they in a a pub?

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Replying to stepurhan:
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By AndyC555
26th May 2021 09:17

It's well known that "My Mate Down the Pub" is the largest tax advisory firm in the UK but I'm now aware of an international subsidiary as one client did mention "This Bloke Sat Next To Me on the Plane" as also a provider of 'interesting' tax advice.

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Replying to stepurhan:
blue sheep
By NH
27th May 2021 07:14

could well have been the "man on Youtube"

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By AndyC555
26th May 2021 09:21

If the mortgage amount was a taxable receipt when it was taken out, I suppose repaying the mortgage could be an allowable deduction.

Was the mortgage amount a taxable receipt?

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By Paul Crowley
26th May 2021 09:25

You really should get an accountant involved

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By Paul D Utherone
26th May 2021 09:41

Why do you think it should b,e and who has told you that it is/might be?

Or to put it another way: No

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Red Leader
By Red Leader
26th May 2021 10:47

Well, I asked my milkman this morning and he said you definitely could deduct it.

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By David Ex
26th May 2021 10:53

I am reminded of Captain Redbeard Rum in Blackadder II, who puts to sea without any crew. “I thought it was customary to have a crew on a ship,” says Blackadder. “Ahhh, well,” replies Rum, “there’s two schools of thought on that. All the other Captains says it is – I says it isn’t.”

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By whitevanman
26th May 2021 11:48

I think you should be a little more charitable. MDP has been unable to trade during the last 15 months or so and has yet to get back into his stride. I for one, look forward to future offerings giving a new slant on this outdated tax stuff.

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Replying to whitevanman:
paddle steamer
By DJKL
26th May 2021 12:16

Was he eligible for government support during that 15 month period, perhaps the odd loan under the BBLS etc ? It would be a real shame for the tax profession and these boards, if MDP's enterprise has been destroyed by Covid.

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Replying to DJKL:
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By whitevanman
26th May 2021 15:11

I believe he did get the odd loan and will be deducting it from his profits, for tax purposes, in due course.

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By Duggimon
26th May 2021 12:16

None of the "everyone" who has any view other than "no" is in any way qualified to express an opinion. Every source that even comments on this will be crystal clear that the outstanding mortgage balance is completely irrelevant.

If you are anticipating the sale of a property at a gain, I would strongly advise you seeking help from a professional, or at least from someone who answered "no" to your question as everyone else is liable to get you in bother.

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