Capital gains Tax credits

kayak

Hello,

Quick question.... Do you have to declare capital gains to the tax credits?

I'm thinking of buying and selling a flat with a view to making a profit up to 10k. Would i have to declare this when applying for tax credits?
Its unclear on the forms and isn't clear if you declare a capital gain!


Thanks in advance.:)

Icequeen99

Capital gains, subject to capital gains tax probably not (any interest from the money over £300 would have to be declared).

However, what you are suggesting might not be treated as a capital gain, it could be subject to income tax and therefore may be counted for tax credits.

My understand is that uf the intention at the time of purchase was to renovate and sell, it is
might be classed as trading and so would be subject to income tax.

If it was bought as an investment and, say, let out for a few years
before sale, then it may be subject to CGT.

I would get some advice on it if I were you.

IQ