Re-mortgaging to BTL and capital gains tax

[custardpies]

Hi

Wonder if anyone would be able to help me with this query - we are planning to re-mortgage our house (which we have been living in for the past 7 years) to a BTL and buy another residential property. If after a year of renting out the property, we decide to sell the BTL property, would the capital gains tax that we potentially have to pay be based on the BTL value or the price we paid 7 years ago?

I would be very grateful for any advice. Thank you.

[ThreeLittleWords]

It would be based on the value of the property at the time if disposal.

[NaiceAm]

You should read this [http://www.hmrc.gov.uk/helpsheets/hs283.pdf] but in short you may not have any capital gains tax to pay if you sell within 36 months of converting to a buy to let and even if you let for longer before selling, you will only pay on a proportion of the gain.

[NaiceAm]

Hmrc do a more user friendly explanation here [ www.hmrc.gov.uk/cgt/property/sell-own-home.htm] sorry for links but I've had so little sleep I can't focus! If they don't work try googling hmrc's website.