Capital Gains Tax on Rental Property Sale

Bonaparte

Registered User
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Moved out of the family home to new house 9 years ago. Took a mortgage against original home as part finance for new home. Am fully compliant and paying all taxes on rental income. Can't claim tax relief on mortgage interest because money was used to buy new house. Have an offer on rental property which will clear the mortgage with a small bit to spare. All sounds great! However, I now believe that I would have a liability for CGT on the difference between what I paid for the house in 1989 and now which makes selling an impossibility. Am I right here as this all seems unfair since the only people making money out of the rental are the Bank and the Revenue. I feel I'm in a dilemma - can't afford to sell and can't afford to stay!
 
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