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Any gains from selling a property would count as capital gains, not income, and you do have a £11K allowance on capital gains.
I don’t know what the CMS rules are around capital gains are but I’d find it surprising if a one off capital gain were to be included.
I think this is an unintended consequence, but I agree with the contributor above that the CMS will have no knowledge or understanding of it. Your tax bill will be about the same (as long as you are not a higher rate taxpayer - that is what the new rules were designed to catch) because you will get a tax allowance the equivalent of the mortgage interest, but you will appear (for CM purposes) to have a higher income, although your expenses (mainly the mortgage interest) will remain the same.
CMS will have no sympathy, so as someone said above a case to your MP would be a good idea (I suspect this will happen tens of thousands of times as the new rules taper in).
Good fortune.
PS. I don't think you are right about the CGT situation, CM is based on income after tax, pension contributions and NI, not on capital gains. Although the capital gain will appear on your tax return it will not be as income.
PPS. If any of your BTL houses are suitable for you to live in then sell the place you live in now (no CGT) and move into one, live there 2 years and sell it (no CGT) and move into another and so on ... lots of landlords do that to wind down their portfolios.
Thank you all.... food for thought...
From all the above comments, I stand by my original suggestion that you get professional financial advice - I think it could save you more than the cost of the advice.
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