Proposed CGT hike in the Autumn Statement?

They don’t allow rollovers unless you ran it as a business. If you were serviced accommodation (holiday lets, etc) then you get entrepreneurs’ relief and pay just 10% tax - until the govt screws you too.
Face it, they are bent on driving out the small LL in favour of the big property owners. The latter throw big money at them. We are simply pawns.
Why are you forced to sell? Who is forcing you?

Hi Chris
You say you are being forced to sell. If you are subject to a Compulsory Purchase Order then you can claim rollover relief. If it isn't a compulsory purchase and you are in the way of a major development don't sell until the price includes your CGT liability.

Reply to the comment left by Rerktyne at 10/11/2022 - 11:42
Same question. Is it a CPO (compulsory purchase order)? If so, surely you'd have a case for arguing that you should be compensated for the unnecessary tax bill as well as the market value for your property, especially as you are dependent upon the income.

The Government want to negatively impact the private rental sector, it wants to destroy it.

Reply to the comment left by Whiteskifreak Surrey at 10/11/2022 - 13:49
I'm not sure about that. I think it's knee-jerk politics, soundbites, because in order to get re-elected governments need to attack people who are perceived to be rich (i.e. landlords).

The tax policies are penalising the smaller landlords and I think probably resulting in a greater number of larger, incorporated landlords. In theory that would make the sector more easy to attack for tax purposes because limited companies have to produce balance sheets. HMRC will get more information in a couple of years time when they introduce MTD for landlords but that's only going to produce information on income and expenses not a balance sheet.

In reality most landlords aren't rich they are just normal people trying to provide a pension and financial security for themselves and their families. Most people don't have access to a pension as generous as a public-sector pension and they are just planning for the future. The landlords who are really rich are the landlords who have access both to a public sector pension and also to a buy-to-let portfolio; although most of those people will need to be incorporated to avoid an excessive tax bill. But when they do incorporate their details will be available at companies house.

What we need to know to help Chris is why and how he is being forced to sell.

Reply to the comment left by Howard Michaels at 10/11/2022 - 13:33
Does rollover relief just apply to land and not residential poperty? I know there will be no relief if a "dwelling house" is bought.

I have never really understood why unearned income such as dividends, rental income and capital gains would be taxed at a lower rate of tax than earned income. Same tax and national insurance for all forms of income seems both fair and reasonable, albeit with tax exempt thresholds.

Each year I do the work, collect the rent and make a profit or loss on the rent and each year there is an incremental loss or gain on the value of the property. In theory, that profit or loss should be taxed in that year‘s income at the relevant tax rate.

With capital gains tax however, all of that incremental gain is rolled up into one tax year and so you then end up paying at least 40, possibly 45 and almost certainly 60% tax. (Which is paid between 100k £124,000)

That’s why capital gains tax is unfair to be taxed at your highest current rate. In short, you lose all the allowances that were truly applicable at the time.

That’s why it is outrageous to tax capital gains at income tax rates.

Reply to the comment left by Peter at 10/11/2022 - 16:18
That's one of the reasons why people have been incorporating; companies pay corporation tax, not capital gains tax. And of course they can deduct all their finance costs. If you are running a limited company you are part of a much bigger club.

Reply to the comment left by Beaver at 10/11/2022 - 14:12
I think there is a lot of mis information regarding the ‘generous ‘ public service pensions .
I worked as a civil
Servant for 42 years full time and part time for 4 years. I get a miserly £11k pension per annum - that’s why I am a landlord 😳😂