I'm hoping that one of the many experienced contributors will be able to point me in the right direction.
A new client has just told me that he is selling a second property that he purchased for his daughter to live in, to buy a bigger property for his daughter to live in rent free. He has been told by another accountancy firm/estate agent/solicitor that he does not have to pay CGT as he is reinvesting all the income from the sale into the new property. I suspect that they did not have all the information.
Also of note is that the father has not elected that the 2nd property is his primary residence which he has owned for more than 2 years
In my opinion, but please do correct me if I am wrong, business rollover relief does not apply as there was no business.
Given that the house and the mortgage is in the fathers name the entire CGT after the annual allowance will be taxed at 18% based on his marginal tax rate. And, there is no opportunity to use his daughters principle private residence relief.
Am I missing anything here such as another applicable CGT relief?
If someone could confirm I am right or point me in the direction of anything I should look at that would be great.