matt.bowey

4 months ago I transferred my flat to a But to Let mortgage in prepartation for moving out to a 2nd property, which I had another, main mortgage on.

The purchase on the main property fell through today (@r$e....!), so I'm gonna sell the flat (which nobody apart form me has lived in), settle the but to let mortgage, and use the equity to help me buy a bigger main property.

The question is: Do I have any tax considerations when I take the equity out of the flat (remember its on a buy to let mortgage) even though I have never let it out??

I'm worried now cos the tax man coull scupper my new plans!! If there is £40k equity.....then I need it all...!!

Help.....!?

Dunk

iTrader: (1)

The type of mortgage you hold is irrelevant, the tax situation will hinge on your length of ownership & occupation. (If length of ownership = occupation
& you haven't let it or haven't claimed your main residence elsewhere you should be fine.)


D (a long time since I took exams )

imlach

Even if you had let it out for 3 months, i think you'd be free of CGT as you were such a recent occupant.

As it is still your main residence, you have ZERO CGT to pay.

As Dunk said, the mortgage being a 'but to let' type is irrelevant to the taxman. The taxman does not need to get involved here.

matt.bowey

Cheers!!

Thank god, cos I've just sold it!!!!!