capital gains tax

[shamrockr]

hi i currently own an investment property i bought a few years ago but i was thinking of selling it and immediately buying a bigger second house, would i have to pay cgt even though i was buying another investment property ?

 

[ClubMan]

Yes. The fact that you might reinvest in a further property is irrelevant. Any gain on the sale of the first property (less allowable expenses, less indexation relief, less annual CGT allowance, less any previously incurred losses etc.) will be subject to 20% CGT.

 

[rainyday]

but i was thinking of selling it and immediately buying a bigger second house

Just out of curiousity, why? Along with the CGT issues, you'll incur all the other costs that go with buying/selling a house - legal costs, survey costs, estate agent costs etc.