We are looking to invest in a 2nd property which will be let out and not be our primary residence. We would like to sell that property to a family member in about 10 years time. But we want to reduce our potential CGT bill. 2 questions:
1) does the CGT tax band depend on income tax band in the year of sale only? (Eg I am currently higher tax band but may be basic tax payer in 10 years time, if rules remain same, does it matter that I was a higher rate tax payer during ownership or is it only in the year of sale that matters?)
2) if we sell 20% of the property each year for 5 years will I get to use my tax free CGT allowance for each 20% sold or is there a tax rule that prevents this?
Thanks for your thoughts.