The biggest reason for investing in property is to make good gains when we sell.\u00a0 I doubt that anyone who buys property does so just for the sake of owning it.<\/p>\n
Our agenda is to make big capital gains!<\/p>\n
We know that if you buy a property, live in it as your main residence and then sell, no capital gains tax is due.<\/p>\n
What people have started to do over the past few years is, rather than buying a property and renting it out, they buy a property, move into it themselves and let out their existing residence.\u00a0 <\/p>\n
This is one of the most tax-efficient ways to invest in property, and shows how a small portfolio, kept over a 15- 20 year period, can produce a very significant (i.e. \u20a41 million) tax free gain.<\/p>\n
So, what does that mean?<\/p>\n
Let us say that you have brought a property and have lived there for three years; you then let it out for three years and sell it.<\/p>\n
What\u2019s your tax bill?<\/p>\n
Zero! This is because the duration of your stay in the property is exempt and so are the last three years of ownership. This is a concession given by HMRC. Where a property has previously been a main residence, then the last three years are always exempt from capital gains tax.<\/p>\n
There is also another handy tax tip that is available to landlords.\u00a0 If you have lived in a property and let it, you can benefit from a \u20a440,000 tax break.\u00a0 Smart investors are starting to do that now to help grow their portfolio.<\/p>\n
When you use this strategy to grow a portfolio, you are looking to make a \u00a31 million gain over 15 \u2013 20 years, for around four to five properties.\u00a0 The tax-free equivalent of that would be to hold about twenty, standard, buy-to-let properties.<\/p>\n
For more information on tax saving strategies visit our sister website Property Tax Portal<\/font><\/span><\/a>. The biggest reason for investing in property is to make good gains when we sell.\u00a0 I doubt that anyone who buys property does so just for the sake of owning it. Our agenda is to make big capital gains! We … Continue reading