Calculating House Sale Profit

chrishadley1983

Hi,

I have a question around calculating profit on a house sale and how it impacts my income.

I plan to sell a property that I bought to renovate. On that basis I understand that I am likely liable to pay income tax rather CGT as I am 'trading' rather than investing. My question is what i can deduct to calculate the profit - is this the same set of deductions as calculating CGT profit or something different (for example stamp duty, renovation costs).

Can't find anything clear on the interweb so any guidance much appreciated.

00ec25

chrishadley1983 wrote: »

Hi,

I have a question around calculating profit on a house sale and how it impacts my income.

I plan to sell a property that I bought to renovate. On that basis I understand that I am likely liable to pay income tax rather CGT as I am 'trading' rather than investing. My question is what i can deduct to calculate the profit - is this the same set of deductions as calculating CGT profit or something different (for example stamp duty, renovation costs).

Can't find anything clear on the interweb so any guidance much appreciated.

you are on the right lines, yes if trading then those costs are all deducted to arrive at profit subject to income tax as you do not have to worry about a capital & revenue cost split, it is all revenue.

chrishadley1983

Ok, thanks very much. Do you have a reference that shows what is allowable in the scenario?

00ec25

chrishadley1983 wrote: »

Ok, thanks very much. Do you have a reference that shows what is allowable in the scenario?

especially the one on trading

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65200p