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2nd property sale help : minimizing tax liabilities
riverfish
Posts: 3 Newbie
Hi,
Due to illness my partner and i had to leave mainstream work, but we still wanted to work.
We were lucky enough to be able to buy a small inexpensive second property and we have been renovating it, and thankfully increased the value.
We now intend to sell the property and use the profit to pay bills and live on.
We are not claiming any benefits etc, and are not currently registered as self employed (and we wonder whether we should register?).
I understand that we may have to pay Capital gains tax?, and at this stage we intend to purchase another property after this one hopefully sells.
We would be very grateful if any one could advise how we are best to minimise our tax liabilities, and advice on whether we should register as self employed or proceed in another way, as this is the first time we have done this.
Thank you very much in advance for any assistance.
nigel
Due to illness my partner and i had to leave mainstream work, but we still wanted to work.
We were lucky enough to be able to buy a small inexpensive second property and we have been renovating it, and thankfully increased the value.
We now intend to sell the property and use the profit to pay bills and live on.
We are not claiming any benefits etc, and are not currently registered as self employed (and we wonder whether we should register?).
I understand that we may have to pay Capital gains tax?, and at this stage we intend to purchase another property after this one hopefully sells.
We would be very grateful if any one could advise how we are best to minimise our tax liabilities, and advice on whether we should register as self employed or proceed in another way, as this is the first time we have done this.
Thank you very much in advance for any assistance.
nigel
0
Comments
-
Hi, I think if you have owned the property for less than 3 years, you will be exempt. If you are liable for capital gains tax, I think you can deduct the cost of refurbishment as well as cost of buying/selling the property (legal fees, etc). Have a look at the Government's website:
http://www.hmrc.gov.uk/cgt/property/basics.htm0 -
If you are property developing. Then you are conducting a trade and therefore will be liable to income tax.0
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