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Calculating House Sale Profit
chrishadley1983
Posts: 2 Newbie
in Cutting tax
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.
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.
0
Comments
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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 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.0 -
Ok, thanks very much. Do you have a reference that shows what is allowable in the scenario?0
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especially the one on tradingchrishadley1983 wrote: »Ok, thanks very much. Do you have a reference that shows what is allowable in the scenario?
https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg65200p0
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