I am thinking of converting the first two floors of my home into self-contained flats, and then renting them out for a few years. I would continue to live on the ground floor. Would I be liable for capital gains tax (CGT) when I come to sell the flats?
Arthur Weller replies:
Depending on the numbers involved, there will potentially be CGT when you eventually come to sell the flats. See HMRC’s Capital Gains Manual at CG65271.