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First-Time buying to renovate and sell & tax
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I will send the answer to people who genuinely helped via Private Messaging when I get the chance.0
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Err not really how a forum works. You will get wrong answers, like I said we don't claim to be experts. The whole point is to put the right answer in a public place to help people who find this thread in the future.I will send the answer to people who genuinely helped via Private Messaging when I get the chance.2024 wins: *must start comping again!*1 -
Yes you are whether you know it or not. This is a business transaction and will be treated as such.
I will not be living in it nor be renting it out. I am also not a property developer. It will just be a one off thing.
If you rent it out it is still a business but if you live in it for a few months you might just get away with it.
P.s I don't care what other advise you claim to have had.0 -
Yes you are whether you know it or not. This is a business transaction and will be treated as such.
If you rent it out it is still a business but if you live in it for a few months you might just get away with it.
P.s I don't care what other advise you claim to have had.
Well, I am now going to be living in it and not selling, so, all is good. This is the answer you are looking for.0 -
Yes, that does make the tax situation VERY different...Well, I am now going to be living in it and not selling, so, all is good. This is the answer you are looking for.
For future reference, because I wouldn't be at all surprised if the initial post disappears...Hi,
I am a first-time buyer and want to buy my first home, which is a 2 bedroom flat in London to renovate, extend the lease and sell. I will not be living in it nor be renting it out. I am also not a property developer. It will just be a one off thing.
The flat's lease will expire in 64 years time and I will be looking to extend this for 99 more years, which would cost me about £55,000.
Based on the fact that I am a first-time buyer and want to buy my first home, my questions are:
1. Do I have to pay Capital Gains Tax or Income Tax?
2. If I have to pay Capital Gains Tax, can I deduct the the following from the profit before applying tax:1. Lease extension price of £55,000 from the gains I have made when I sell the flatThanks
2. Solicitor's fee(buying, extending lease and selling)
3. Surveyor's fee
4. Estate agent's fee
5. Early repayment mortgage fee of £6,000
6. Renovation cost of about £30,0002 -
Because it's far from unusual for the person starting a thread to have a tantrum and delete it when the answers don't go the way they want. I ADDED MY OWN STUFF HERE.
No, no, the thread is staying and I will not be deleting it. Do remember though that when someone quotes something on here, it can easily be manipulated like I did with your one above so it really doesn't mean much.
As for throwing tantrum, it wasn't a tantrum at all. It is human nature to assume stuff and make themselves look bigger or more knowledgable than they actually are, thinking new people on the forum are a nothing, wannabe property developers or on benefit only because they post stuff on here at 10 or 11am after watching 'Homes under the hammer'.
They are very quick to judge without knowing anything. Now this is annoying but there was no tantrum involved. I am simply withholding information I've received because of those people.
The question I asked was a very simplified version and I didn't include 90% of what's actually happening because I wanted to get a rough idea of what my options will be and was researching before taking any actions.
So, whether I live in it or not and sell it, it will NOT be income tax(in my case). Why wouldn't it be income tax? Well, you should have watched more 'Homes under the hammer' then, shouldn't you?0 -
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"Curiouser and curiouser," cried Alice.
Why would someone who is intending to buy a property and live in it require confirmation from HMRC in writing about the tax situation? What is there for the solicitor to look into other than the usual searches etc?Well, I am now going to be living in it and not selling, so, all is good. This is the answer you are looking for. True but my solicitor is looking into this and I will get this from HRMC in writing too.
Whatever the truth I wish the OP well in his new home and that the lease extension goes smoothly.0
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