Is there CGT to pay on a second property bought to resell

Greentea

Just wondering if I buy a house do it up and resell it whilst living in another house would i have to pay CGT on any profit. Or is CGT only applicable if it is rented during the period. From what I understand there should be CGT payable but you never hear about this when property developers are on TV?

thanks for any insight.

cash99

Greentea wrote:

Just wondering if I buy a house do it up and resell it whilst living in another house would i have to pay CGT on any profit. Or is CGT only applicable if it is rented during the period. From what I understand there should be CGT payable but you never hear about this when property developers are on TV?

thanks for any insight.

Probably not CGT you pay income tax instead. The income tax route may actually be more beneficial, as more expenses will be allowable, but it would depend on your circumstances.

Either way there will be tax to pay on any profit.

Tiggs_2

Greentea wrote:

From what I understand there should be CGT payable but you never hear about this when property developers are on TV?

thanks for any insight.

Because if they had a show where someone made £30k in 6 months then paid 40% CGT on much of it you would wonder why they bothered quiting thier fancy job to earn peanuts working like a loon....thus bad TV

silvercar

You can allow all your doing up costs, selling costs and purchasing costs against your profit. you also get an allowance of over £8,000 each year.

seven-day-weekend

AFAIK it is liable for CGT; however as an earlier post said:

silvercar wrote:

You can allow all your doing up costs, selling costs and purchasing costs against your profit. you also get an allowance of over £8,000 each year.

Cook_County

If this is a venture in the nature of trade (it sure sounds like one!) then there is no £8,000 annual CGT exemption.