Can Capital Gains Be Rolled Over to Purchase a Buy-to-let Property?

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Q.3 Can capital gains be rolled over to purchase a buy-to-let property?
I have recently sold my furnished holiday letting (FHL) and made a small capital gain of £25,000. Can I roll over this gain into a buy-to-let property?If so, do I need to tell HMRC of the sale within 60 days?
Arthur Weller replies:
Firstly, the 60-day reporting requirement applies to FHLs, because it is classified as ‘residential property’. Secondly, until April 2025 you are able to roll over gains on furnished holiday lettings, but rolling over onto a buy-to-let property will not work. The new investment has to be a ‘qualifying asset’ (see HMRC’s Capital Gains Manual at CG60280P). Qualifying assets include FHLs (see CG60287) until April 2025.

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Updated on November 18, 2024

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