So mortgage costs DONT factor into the gain then? It's purely the difference between buying price and selling price? I assumed it was the profit you walked away with that was subject to CGT ...
Or have I essentially declared which one is my PPR by renting out the old one? Although rental gains will only be declared in my 2007 returns next year?
OK, so just to clarify - if I were to keep and rent out the old PPR for another 7 years, does this essentially negate the 7 years I lived in it? Is that how it works?
Tying myself up in knots here....
The mortgage is currently interest-only, am talking about upping the mortgage by 100k which means paying higher mortgage interest and offsetting this to the rental income - hoping essentially the relief will cover most of my rental income liabilities.
Then the 100k 'released equity' is free to reinvest elsewhere. Does that make sense?
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