Property tax

[nomura1]

Hello,
I am not working from last month so income and decided to invest in the property business with a partner. i do already own 1 buy to let and 1 residential property where i live full time with my wife as joint ownership.

I would like to buy property and renovate it every 3 to 6 months and try to sale it or rent it out if i cant sell it.i planning to use some of the profit pay my living expense.

I would like to know more about the tax and how to set up this business the more efficient way.And know all the option to set up this business.

Many thanks
nomura

[gordon mccaw]

If you intend to buy and sell properties in this manner then you will be considered to be trading by HMRC, with your profits subject to Income Tax. I would trade as a Partnership initally in order that losses can be carried back against previous income (and tax reclaimed) and profits/losses can be allocated between me and my partner in the most tax efficient manner.

As a starting point, you will need to notify HMRC when you start to trade and register for Self Assessment. The forms can be downloaded from HMRCs website

[nomura1]

thanks

[section 44]

Bear in mind that if (alternatively) you were to acquire the property with the intention of redeveloping and then letting it, but ultimately you sell the property instead, then this may have a different, perhaps more favourable, tax analysis than if you had always intended to sell the property.

It's probably worth thinking carefully about the likelihood of letting (given the state of the housing market). Intention is the key, but practically you need to consider how the evidence would look to an outsider.

[Incredulum]

Intention is the key, but practically you need to consider how the evidence would look to an outsider.

Bear in mind, OP, that multiple occurences of similar changes in intention might suggest that your actual intention was not your stated intention.