How we helped a Cricklewood landlord plan around Brent Cross West regeneration
Client B owns two buy-to-let flats in Cricklewood that have appreciated significantly with the Brent Cross West regeneration and the new Thameslink station. He was considering selling one to release capital but hadn't understood the CGT consequences or how to minimise the bill, and the Section 24 restriction was eating into his rental profit on the retained property.
We modelled the disposal carefully, calculating the gain, identifying all qualifying acquisition and improvement costs, including disposal costs, and advising on a pre-sale transfer of a share to his spouse to use both annual exempt amounts and both basic-rate bands, plus a pension contribution in the disposal year to extend his basic-rate band so more gain fell at 18% rather than 24%. For the retained property we reviewed whether incorporation would beat the Section 24 position.