- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch
Where Taxpayers and Advisers Meet
property development
I would like to start sustainably renovating homes and wondered whether I can avoid some of the CGT. I will be living in rented accomodation whilst doing-up these properties and then selling them on. Would I need to live in these properties for a period, and if so how long? Also I hear that properties are VAT exempt here, so I couldn't be VAT registered and thus reclaim the VAT on anything I spend?
-
hq@vatease.co.uk
- Posts:13
- Joined:Wed Aug 06, 2008 2:18 pm
Regarding the CGT position, living three months in each of those properties before selling should be enough to etablish a main residence in the eyes of the taxman and thus exempt the gain.
I hope this helps.
Demetris Savva BA FCCA
http://www.tax-accounting-london.info
Visit our website to subscribe to our FREE weekly newsletters on tax savings and business advice and you will automatically be sent your FREE Special Report on How to Sav Tax, written in plain language, full of down to earth advice and loaded with practical examples.
I hope this helps.
Demetris Savva BA FCCA
http://www.tax-accounting-london.info
Visit our website to subscribe to our FREE weekly newsletters on tax savings and business advice and you will automatically be sent your FREE Special Report on How to Sav Tax, written in plain language, full of down to earth advice and loaded with practical examples.
Exercise care, The evenue are likely to look at motives when deciding whether you are conducting a trade. If they decide you are then profits are taxed as income. It seems probable that registration/recovery of VAT might encourage a conclusion that you were trading rather than occupying a property as PPR.
neale@coules.com
neale@coules.com
-
hq@vatease.co.uk
- Posts:13
- Joined:Wed Aug 06, 2008 2:18 pm
Tony,
When you make the sale of the house it may be a VAT exempt transaction as it is "second-hand". This means that the VAT may not be recoverable. If you include this in your VAT registered business you may be able to take advantage of a special scheme which means you may be able to get more VAT back.
In addition to this, depending on the facts, there may be some scope for the reduced rate of 5% to be charged to you and finally if it is a listed building there may be even more scope for 0% VAT to be charged to you by the developer!
Complicated area and I do suggest that you invest a bit of money in taking professional advice, (my number is at bottom of this response if you want to contact me) because I'm sure there will be some savings to be made somewhere.
Good luck!
Kind regards
Simone Hurst-Franks
Principal
VATease - 0121 778 4299
When you make the sale of the house it may be a VAT exempt transaction as it is "second-hand". This means that the VAT may not be recoverable. If you include this in your VAT registered business you may be able to take advantage of a special scheme which means you may be able to get more VAT back.
In addition to this, depending on the facts, there may be some scope for the reduced rate of 5% to be charged to you and finally if it is a listed building there may be even more scope for 0% VAT to be charged to you by the developer!
Complicated area and I do suggest that you invest a bit of money in taking professional advice, (my number is at bottom of this response if you want to contact me) because I'm sure there will be some savings to be made somewhere.
Good luck!
Kind regards
Simone Hurst-Franks
Principal
VATease - 0121 778 4299
