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Income tax
richy10
Posts: 11 Forumite
in Cutting tax
HI All
What a brilliant website/forum
Could anyone please answer the following questions for me?
I have recently bought an end terraced 2 bed house for £145,000 (11may 07)
I have gained planning permission to convert into 2 1bed flats. I have been told by an estate agent that i could sell each flat for £110,000.
Obviously this would be a profit of £65,000. As from 11 June I have put tenants in the house to cover my interest only mortgage. My deposit was £25000 if this helps.
What are the CGT,Income Tax and NI restrictions etc on this? Do I have to live in the house for a certain time to avoid cgt? Is this a business?
Could anyone give me some sums so I can understand the workings out and perhaps a final figure (regarding tax) on the above.
Richy
What a brilliant website/forum
Could anyone please answer the following questions for me?
I have recently bought an end terraced 2 bed house for £145,000 (11may 07)
I have gained planning permission to convert into 2 1bed flats. I have been told by an estate agent that i could sell each flat for £110,000.
Obviously this would be a profit of £65,000. As from 11 June I have put tenants in the house to cover my interest only mortgage. My deposit was £25000 if this helps.
What are the CGT,Income Tax and NI restrictions etc on this? Do I have to live in the house for a certain time to avoid cgt? Is this a business?
Could anyone give me some sums so I can understand the workings out and perhaps a final figure (regarding tax) on the above.
Richy
0
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