Does a buy-to-let property qualify for rollover relief ?

Does a buy-to-let property qualify for rollover...

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I have a client who has had a buy-to-let property for many years.

Her letting agent has advised her to sell up now, as the property is not in a very good area, and reinvest in a property in a 'nicer' area that would be more marketable.

Can the gain be rolled over into the new property, thus deferring any CGT, or must she take the hit know and then move on ?

Many thanks in anticipation of your responses !
Patrick Kelly

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Euan's picture
By Euan MacLennan
01st Sep 2006 10:28

No
...unless it is a furnished holiday let, which seems unlikely if it is not in a very good area.

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By Brian Gooch
04th Sep 2006 14:46

PPR
A PPR election only works if it has actually been the owner's residence for part of the period of ownership, otherwise it is not possible to elect that the property is the owner's PPR, since it isn't even their R!

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By peterlashmar
04th Sep 2006 13:02

Property lettings
NO! Unless furnished holiday let.

What about claiming PPR?

HMR&C set out how to claim PPR when an election is made for only a short time (1 month in their example) in relation to a second property.

Basically, however long the claim is for will give PPR for the last 3 years of ownership.

Peter Lashmar
Lashmars

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By AnonymousUser
04th Sep 2006 14:02

Question The Letting Agent's Advice
Why go through the pain & considerable expense of selling and purchasing another property?

I would tend to hold off selling, I have found the yield tends to be considerably higher in the 'not so nice' areas and that these potentially offer the better % capital growth; they do however take more managing. It sounds as though the letting agent wants an easier life for an increased fee!

If your client has owned the property for some time why not raise some more capital on it and purchase another property in a better area.

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