Hi,
I wonder if some of you lovely folk on here can give me a bit of guidance on a couple of issues. my background is I'm a taxi driver and rent some out some properties.
1. I've owned a house for 3 years, I've rented it out for the entire time i've owned it, I recently got planning permission for a house in the side garden (small garden, just big enough for a 3 bed house, well under 0.5 hectares). I've just sold the side garden for £130k, I still own the original house and continue to rent it out. (original house purchase was £167k.) my question is, am I simple liable for CGT at the relevant rate on the £130k? ( I realise it will be a little less than £130k as I'll be able to apportion a value of the plot before planning was granted). Essentially is there any risk of this being seen as a trading business so attracting income tax rates and Ni instead of relevant CGT rates?
2. Similar scenario to above. I've owned a house for 2 years, rented it out the entire time i've owned it, Got planning for an attached 2 bed house, that is currently being built. Question this time is, If is simply rent out the new build and continue renting out the existing house are there any taxes (apart from the rental) that are due now? I think I read somewhere that a gain is made as soon as a building has started to be built!?
I've tried to research the area but don't seem to of found any scenario exactly like mine. It would be great if anyone can throw any light on this area.
Regards
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