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A Little advice for budding "property developer"

maxtuuuu
maxtuuuu Posts: 13 Forumite
edited 11 February 2016 at 8:09PM in House buying, renting & selling
Hi guys,
I am looking for a little advice

Comments

  • anselld
    anselld Posts: 8,684 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    So long as you only have a single property and genuinely live there (only) as your main residence I think you will be OK with the tax man.

    As soon as you start calling yourself a property developer and it becomes clear that the main intention is to develop property as a trade then your profits will be taxed as income.
  • maxtuuuu
    maxtuuuu Posts: 13 Forumite
    anselld wrote: »
    So long as you only have a single property and genuinely live there (only) as your main residence I think you will be OK with the tax man.

    As soon as you start calling yourself a property developer and it becomes clear that the main intention is to develop property as a trade then your profits will be taxed as income.

    Hi, yes it is my only property and is essentially home although not living there for long periods of time.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    I'm not sure what you mean by "...or should this be a business as such?"

    It IS a business. It was a business the minute you bought your first house with the intent to make money, and you should be paying income tax on your profits. The fact that the house is also your residence doesn't affect that side of it.

    If you're wondering whether you should register a limited company to channel the finances through, that's one your accountant can answer for you. There's a lot to consider.
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    maxtuuuu wrote: »
    Hi, yes it is my only property

    That affects SDLT, as of April.
    and is essentially home although not living there for long periods of time.

    There may be CGT implications. You need to speak to your accountant.
  • anselld
    anselld Posts: 8,684 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    edited 11 February 2016 at 8:03PM
    maxtuuuu wrote: »
    essentially home although not living there for long periods of time

    .. doesn't sound convincing!
    If the tax man ever does investigate you will need to convince him that it is your main residence in practice as well as on paper.
  • maxtuuuu
    maxtuuuu Posts: 13 Forumite
    AdrianC wrote: »
    That affects SDLT, as of April.



    There may be CGT implications. You need to speak to your accountant.

    Hi, i don't have an accountant but will look into this further. Thanks
  • marksoton
    marksoton Posts: 17,516 Forumite
    maxtuuuu wrote: »
    Hi, i don't have an accountant but will look into this further. Thanks

    Funnily enough i was going to respond to the previous post betting you didn't....

    Get it sorted.
  • booksurr
    booksurr Posts: 3,700 Forumite
    marksoton wrote: »
    Get it sorted.
    LOL - his idea of sorting is to run away and delete the post

    yes it would be income tax because your intent is to develop for profit, you partially living there will not alter that and make it exempt

    trying to claim it was home and this exempt from CGT may work the first time but if you make a pattern of this you will soon be spotted and taxed to income tax as the developer you are pretending not to be

    claiming CGT exemption whilst not actually living there as your real main home would be tax fraud and would have more repercussions...
  • marksoton
    marksoton Posts: 17,516 Forumite
    booksurr wrote: »
    LOL - his idea of sorting is to run away and delete the post

    The boards seem to be clogged with this BS currently.

    Hardly a surprise. But no less tiresome.

    I feel sorry only for the tenants/ recipients of these tax dodging barstewards.
This discussion has been closed.
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