Use PAYE profit to purchase additional property

Jameseeharve

Hi, I am just looking for advice on using my PAYE profit to purchase an additional property for future investment purposes. And if I can claim it as a cost on my next return?

In this current tax year I renovated a property which I sold rather swiftly making a nice profit. My question is can I use part of the profit to purchase a 2nd home??
The renovated property was not my residential home and the works done purely to tide myself over as I knew their was profit to be made, and my work situation slow at the time of opportunity.
I am a self employed builder and It was more so a one off as I currently have lots of private work for the next year at least.
I have a another small property in mind however, and my thought at the moment is to get a 20% deposit residential mortgage, move into the property, and once I have done some minor cosmetic works then put the property onto a buy to let scheme about a year later.
I would want a residential mortgage initially as rate low, I am temporarily living there, and the one I am looking at has no fees or early repayment charge. The value should have increased by 15% also meaning I would put more equity in a btl after maybe drawing out a little more equity also once completed.
this is the general gist of my current thoughts, looking for advice and people thoughts on the best way to go about it.
Thanks

Pennywise

There's no rollover relief on selling a domestic property and buying a new one. If you've made, say £50k profit on it and sell it, then you pay tax on that £50k profit, regardless of what you spend the profit on.

Living in the property is a completely different thing and you really need professional advice from an accountant if you're planning to start living in a property. There's a fine dividing line between it being an asset subject to capital gains tax or trading stock subject to income tax and NIC. Living in it complicates things.