In order not to pay taxes on a capital gain how fast do I have to invest that money in something else?
I want to sell my income property and I want to know if there is a time limit to pay taxes on the gains, or I have to pay the taxes once I get the money. I want to invest in something else but I don’t really know what ,so I wanted some time to think about it and that’s why I wanted to know if there is a time limit. Can somebody help me? Thanks
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Tags: Income Property, Pay Taxes, Time Limit
sell property | , 14 Jan 10
By Tax Chap, January 15, 2010 @ 9:31 pm
The date for payment of tax depends on when you are sent a tax return. Generally speaking, under self assessment, the due date for payment of Capital Gains Tax is normally 31 January following the tax year in which the disposal took place. It may be extended according to the date the tax return is issued.
According to your circumstances, you may be able to claim Rollover Relief. This is something you really need to discuss with a qualified accountant as there are strict rules in place as regards qualifying assets.
If you are eligible for Rollover Relief, then reinvestment must generally take place within the period from 12 months before to 3 years after the disposal of the old asset.
By tringyokel, January 16, 2010 @ 3:24 pm
If by “income property” you mean a house that is being rented out then you will not be able to claim rollover relief.
|In fact rollover relief does not exist, the proper name is replacement of business assets relief. So you see to qualify the asset sold must be a business asset.
Although renting property is referred to as a Schedule A business it is not a business asset for these purposes.