Property Gains Tax

GDB2222

sunshinetours wrote: »

If this is a one off and you jointly own the property with your other half it would be hard for HMRC to argue against this being a capital tax issue rather than income tax issue. If you are buying the property for future investment and happen to be improving it and then decide you wish to sell it very hard to prove anything else.

About the only proof they might have is that the OP has blurted out his intentions on a public forum.

But I agree, that sounds a reasonable approach - stick it on the tax return as a capital gain and see whether the revenue ask any questions. I think that's what the OP had in mind, anyway, as he was talking about 18% tax. Obviously, if he repeats the exercise a couple of times, HMRC are going to start querying the original transactions.

ads2312

theartfullodger wrote: »

I offer no defence of myself as described by ads, however regarding his assertion

would simply quote from a couple of his posts..

are you stalking me ? Looking up my posts all day ! you are one sad little person. Can you not tell from my posts that I like a bit of banter and a joke here and there! Internet hard men who's only friends are on a public forum. Really at your age you should get a life. Go back down you little hole now grandad.

ads2312

GDB2222 wrote: »

About the only proof they might have is that the OP has blurted out his intentions on a public forum.

But I agree, that sounds a reasonable approach - stick it on the tax return as a capital gain and see whether the revenue ask any questions. I think that's what the OP had in mind, anyway, as he was talking about 18% tax. Obviously, if he repeats the exercise a couple of times, HMRC are going to start querying the original transactions.

My 'dodgy' EA friend did say you can get away with it once but that's about it. I really hadn't thought about the legal implications and if I want to make a living out of this I'd rather do it by the book, but will see an accountant and see what options there are. 3 or 4 a year is obviously optimistic but well do able if the properties are there. Luckily I have a decent amount of cash to invest so will be down to me to work my butt off.
cheers

CLAPTON

ads2312 wrote: »

Thanks, deffo right about needing to see an accountant as it's all so confusing. I plan to make this my job and hope to turn over 3 or 4 a year so need to start reading up. Eventually do BTL. Problem I'm finding is everyone has different advice (My EA friend for one!!) but its hard to know who's right ! There's us thinking it's as easy as buying,doing up, selling and making money !! I can do all the practical stuff but all this tax stuff is doing my head in. Will book to see someone pronto.

Thanks again

you need to be a bit clearer in your intentions

if you plan to buy 3/4 per year to do up and sell there is no question that HMRC will see this as a business and you will be charged as trade i.e. income tax will be charged

if you buy and then let out for a while and then sell it's likely then the sale will probably be consider a capital gain; however if you do this a lot they will probably consider it trade

so it rather depends upon what your plans are

GDB2222

ads2312 wrote: »

My 'dodgy' EA friend did say you can get away with it once but that's about it. I really hadn't thought about the legal implications and if I want to make a living out of this I'd rather do it by the book, but will see an accountant and see what options there are. 3 or 4 a year is obviously optimistic but well do able if the properties are there. Luckily I have a decent amount of cash to invest so will be down to me to work my butt off.
cheers

Are you planning to do all the renovation work yourself, living on the premises whilst you do it? If so, that could be pretty deadly.

ads2312

GDB2222 wrote: »

Are you planning to do all the renovation work yourself, living on the premises whilst you do it? If so, that could be pretty deadly.

did that in my current house, nightmare !

Hoping to get something within a hour but will stay there if necessary but only if I cant get there. If I can get something on the coast I have friends living there. Most of the work I will do myself.
cheers

clutton_2

if you want a forum where you can learn masses about the property business, and virtually no jealous mudsllnging - google property tribes.. its a great forum.. there are some Seriously clever professionals post on there, and there is a wealth of correct information there.... and some good property/tax accountants post on there..... you will be welcomed with open arms there.....

good luck with your researches

sunshinetours

In fairness he may also have got better replies under the cutting tax sub forum where there are also some professionals. Do agree its generally far more civilised on Property Tribes than in here though!

Credit-Crunched

All I can say is HMRC never fall on the side of 'maybe he is telling the truth'...

If they can prove evn in the slightest that you bought the property with the intention of selling it for a profit and then CGT will be slapped on.

I was made aware of a case by a collegue who worked on a CGT back date due to evidence achieved from 'Homes under the Hammer'

Tread carefully, or at least keep the amount of CGT due in liquid assets just in case the bill lands on your floor!

GDB2222

Credit-Crunched wrote: »

If they can prove evn in the slightest that you bought the property with the intention of selling it for a profit and then CGT will be slapped on.

I think they would go for income tax, which would be miles more. Sunshinetours explained it very well.