Is it worth it after CGT?

Is it worth it after CGT?

11:21 AM, 29th November 2021, About 3 years ago 39

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It would seem many landlords are selling up, ‘but’ is this where capital gains tax comes in?

As an example:- I have read if a property rises in value to leave £300,000 after taking away purchase price exp’s etc. After the measly £13000, allowance taking into account the capital gains tax thresholds with rates of 20% and 28% respectively the capital gains tax bill would be around £80,000!

Have I got this right?

It would seem the rental income over the years mostly goes to the government by another name!

I believe corporation tax is slightly lower?

Many thanks

Lalo


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geester24

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18:47 PM, 4th December 2021, About 3 years ago

Reply to the comment left by Elaine Landlord at 04/12/2021 - 11:06
I'm a BTLer also and have been for 30 years and what enabled me to retire early(although you never retire if you run BTL) but I'm starting to think I should diversify out a bit and enjoy myself. Selling a couple of laggards and pay a little CGT makes sense. Spending it on some fun and investing the rest in a global all shares tracker will give me the same yield. Also, even you have agents you still have to be involved a bit with the hassle (higher figure repairs etc). So much red tape now and pending EPC stuff.Having too much in property is too illiquid.

Mark Alexander - Founder of Property118

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18:50 PM, 4th December 2021, About 3 years ago

Reply to the comment left by geester24 at 04/12/2021 - 18:47
I am working on an article to share my own thoughts on this. Watch this space.

Olls63

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20:08 PM, 4th December 2021, About 3 years ago

Reply to the comment left by Elaine Landlord at 04/12/2021 - 11:06
CGT is avoided by death!

Mark Alexander - Founder of Property118

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20:33 PM, 4th December 2021, About 3 years ago

Reply to the comment left by Olls63 at 04/12/2021 - 20:08
True but IHT isn’t, that requires planning

Olls63

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20:36 PM, 4th December 2021, About 3 years ago

Reply to the comment left by Mark Alexander at 04/12/2021 - 20:33
And usually left too late.

david porter

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11:58 AM, 5th December 2021, About 3 years ago

Inheritance tax
If when you die and all your issues are resolved and you leave your children a sterling figure of seven digits each after tax and expenses that is all you need to do.
Leaving an enormous fortune will not do them any good

shuey

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14:31 PM, 6th December 2021, About 3 years ago

have you considered SEIS investments? The tax perk should not be the main reason to invest but potentially this may reduce your CGT?

Peter G

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19:05 PM, 16th December 2021, About 3 years ago

Reply to the comment left by Monty Bodkin at 29/11/2021 - 15:23
A 20% tax on any income above £15,000 would generate huge revenues while incentivizing everyone to earn as much as possible. However this policy would cause some people to become unemployed - tax collectors, civil servants, accountants, lawyers, especially - so it will never happen without a revolution. Sadly all their brainpower is dedicated to counting numbers instead of devising the next scientific breakthrough.

Peter G

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19:08 PM, 16th December 2021, About 3 years ago

Reply to the comment left by geester24 at 30/11/2021 - 11:35
The politicians would be stupid to make the changes you mention, but stupidity has never stopped them before.

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