buy a house with savings

the_survivor

hi.
I'm looking at getting into property development and am looking to buy my first house with savings and shares. the house purchase will be a cash buy. do i need to pay any tax on the savings and shares before using it to buy my house. ultimately i will renovate the house then sell for a try profit which i assume i will have to pay tax on. the question is do i i pay tax on my savings and shares money or can i just use it to buy house?

thanks

gettingtheresometime

Well any gains you make on the shares can be offset against your cgt allowance butt whether you pay tax depends on how much if a profit you make on & whether you have used your cgt allowance in other ways

G_M

What you do with the money (eg buy a house) makes no difference to the tax on your savings/investments

* savings. Any interest you are receiving is already subject to tax if relevant (eg if you earn more than £1000 in interest pa, unless in a cash ISA)

* investments. Any annual interest/dividends are taxable at your rate (basic, higher etc). When you sell, any gain is subject to Capital Gains Tax (after your annual CGT allaowance

Then you use that money to buy your house

- you'll pay SDLT when you buy

Then you renovate and sell.

The profit will be subject to Income Tax (added to your income and taxed at your rate as it's a business.

kinger101

How are you investments held? If they're not in a ISA wrapper, you'll have to pay capital gains tax when you dispose of them. Though the first £11,100 of any gain is exempt from tax.

If you have any loss making shares within your portfolio, you can sell these at the same time to "crystalize" the loss, offsetting it against any gains.

the_survivor

Some of the money is in shares between me and my wife and other is in savings. Basically we will look all the money together then buy a house. So basically I have to pay CGT before buying the house or after buying, renovating and selling?