If selling a second property can I avoid capital gains by paying any profit into private education?

The high schools within our catchment area are awful and there is only one Grammer school for a massively oversubscribed area. Is there any way I can pay the profit into their education (creating less strain on system, that is already taking tax from me for a state education that I do not have confidence in) rather than back to the taxman?

We are not a wealthy family. Low earning, but both husband works full time and I work part time. Also quite lucky to have bought a small second property a few years ago that has appreciated fairly well.

Any thoughts?

No, CGT will be payable on the difference between the selling price of this property and its original cost. It does not matter how you invest the proceeds (and buying private education is certainly not tax deductable), the gain is taxable.

No - unfortunately not. Go and see a good accountant. You and your husband get a 拢9200 capital gains allowance each - so that might reduce some of the taxable gain.

I don't believe so. Now if you were to tie the money up in an IRA or investment on property,you would be fine. Our Government has become a very self indulgent thief.

unfortunately, there is no way to avoid it.

however you will reduce the tax if the property is in joint names with your wife as the profit will be split 50/50 and you will both get an annual expemption of about 拢9k each, so thats 拢18000 tax free anyways.

your best bet would be to sell 50% to someone now, like they do with the 50% house buying arrangements.

then after 5th april 2008 sell the other half, this way you will get the annual exemptions again.

so in total you would get around 拢36000 tax free

obviously this in reality is not the most practical thing to do.

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　　Property Investment 　　Profitable Investments 　　Private Investment 　　Private Equity 　　Private Capital 　　Personal Investment 　　Pension Fund 　　Pecunix

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