Reduce capital gains?

Cduk

Hi, are there any further ways of reducing capital gains on the build and sale of a property? I'm simply planning on using the full build costs plus the allowance of two people but I wondered if there are other things I can take in to account? Many Thanks

nomunnofun

Oh dear! Alarm bills! There are many, including me, who would consider that you are trading and in a partnership!

You may have reasons to challenge this but I would suggest that you look at this from the HMRC manual.

http://www.hmrc.gov.uk/manuals/bimmanual/bim20205.htm

holly_hobby

If the property has been build with the intention of sale and generation of profit, you are liable to income tax on the return NOT capital gains tax.

As such you may apply any unused personal allowance against the net profit apportioned as income to you. (of course the net profit is after the application of all build costs etc)

Hope this helps

Holly