Will I pay CGT?

Buritonian

Hi, I'm currently renting but have had a little windfall and can afford a deposit small house in a nearby area. However we're not keen on that area, so we'd like to buy a fixer upper there, give it an overhaul (without moving in) and put it back on the market within months (which we believe we can afford to weather too), at a higher value, and then buy a fixer upper in the area we do want (and move in to refurb). By not moving in, the place is easier to work on and we'll get it done quick, and we forgo the upheaval. Would this be a considered a flip and would I pay CGT? Also would a mortgage provider need to know my intentions and would they view it as they would a BTL venture and therefore want a bigger deposit? I'm asking as I need to know if my maths hold up or if living in the project property is essential.

theartfullodger

Sounds like trade , you'd pay income tax on gain.  Want to do that?

Slithery

As above, this is a purely business venture so income tax would be due on any profit. Also neither a standard residential or BtL mortgage would apply as you wouldn't be living in it or renting it out. You'll need specialist development finance instead.

Buritonian

thank you both. So moving into the project makes sense, if we go ahead.