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Sorry Debbie, me again ?
I posted the same question on several forums on the same day and am getting conflicting views.
someone is saying it is illegal and if I did do it I would need to pay CGT up to the date of conversion.
life is never easy, any thoughts?
Not sure why anyone would think it is illegal? HMRC guidance here which equally applies to holiday lets if they qualify as such. https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg63975
Director of Tax Peplows Limited
CTA ACA FCCA
I don’t know why either, getting a straight answer on anything seems impossible nowadays!
every expert seems to say the opposite to ever other expert and HMRC just say nothing and will give no view in writing. If they are not the authority, who is!
i find myself at the mercy of so called experts and am pretty sure I am not the only one. My brain does not compute all this data, figures were never my forte, I buy and rent flats but now that I am facing bankruptcy if s24 rolls out completely along with a few interest rate rises I am having to take action. What action do I take though??? There is no collective thinking, it just seems to be advice from people selling what they believe to be correct. Unfortunately I am the clown in the dock saying I know your honour, I should have stuck in at school, learned more than this expert then I would have known it was incorrect!
how am I supposed to know more than the expert and why should I be in the dock? It should be the professional who gave me the advice explaining himself. They all offer insurance but what good is that if they fold the company and start a new one.
thanks for the link which I will read and try to absorb but it will be down to my interpretation of it rather than facts no doubt. There should just be a book of rules easy to read and understand for the likes of me. A Highway Code for landlords! I know if I park on a double yellow line I will get a ticket or lifted but if I go for a BICT or a HYBRID I might be right or I might be wrong, do nothing and I go belly up!
who thought buying 60 flats to rent to local people on benefits would be so hard - I told them they had a house for life if they paid the rent (win win) and now I am putting them out of their home.
A rant from a fed up landlord who doesn’t know where to turn! Safest route is throw out 45 families pay the cgt and pay off 15 flats completely then crawl back under my rock; life was better there!
have a look here also https://www.taxinsider.co.uk/1672-Furnished_Holiday_Lettings_Is_Your_Property_Special.html
That does seem conclusive, hopefully no other member will now tell me the opposite lol
l have subscribed to tax insider before but never really got anything from it as once again, I couldn’t really absorb what I was reading.
Might give it another try as I recall there is a panel you can pose questions to?
Perhaps they were saying it was illegal as regards the mortgage rather than tax?
I have sent you a private message please reply when you are free
Just to clarify am I right in thinking that if I owned a BTL property for 20 years and then turn it into a holiday let for at least 12 months and then decide to sell it, i will only pay CGT at 10% because I can claim Entrepreneurs Relief?
Has this been tested at a tax tribunal as it just seems too good to be true?
Also if I had 6 holiday lets, provided I sell all of them together, I could claim Entrepreneurs Relief.on all of them
If you know of a good tax book on holiday lets I would like to know what you recommend.
See conditions of material disposal here https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg63975.
Not aware of any particular books on holiday lets, tend to read the guidance and legislation
see here https://www.taxadvisermagazine.com/article/entrepreneurs-relief-choppy-waters