Early House sale charges

fezz

Ive been told that if you buy a 2nd property to develop and then sell on that if you sell it within 6 months of buying it then you have to pay extra charges/capital gains. Ive been searching the net but cant find a site which explains/confims this.

Does anyone know anything about this or know where i can find out more information.

Thanks in Advance.

MarkyMarkD

You can't pay more than the full amount of capital gains, i.e. proceeds less costs. If you hold it for a long time, you can get some reductions, but it doesn't work the other way round.

Doozergirl

If you own a second property you are liable for Capital Gains Tax on the profit you make. You have something like a £8800 personal allowance each year so you can deduct that amount from your profit as tax is calculated on what is left, based on the level of tax that you normally pay.

The only exception is if that property has been your main residence within the last 3 years, in which case there is no CGT liability. You are also entitled to extra relief if you own the property for a number of years...

But if you are selling on straight away, then yes, you are liable for CGT.

fezz

thanks for the quick replies.

Ive read up on the CGT but i was told that if you bought and sold the property within 6months then there are extra fees/charges/money to pay, is this not the case then??

Thanks

david29dpo

no. none at all.