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Where Taxpayers and Advisers Meet

Income Tax or Capital Gains Tax?

businessmind
Posts: 8
Joined: Sun Feb 07, 2010 6:33 pm

Income Tax or Capital Gains Tax?

Postby businessmind » Sun Jun 04, 2017 10:23 am

I have a number of buy to let properties that I hold personally, I have only ever bought and not sold. I purchased another at the start of the year which I planned to renovate (work carried out by a contractor) and let out. There was more work than I first thought and having now completed the work I am thinking it might be better to sell given the market value is favourable and rental yield low relative to this.

I have found a party that is willing to rent the property for a period of 6 months before buying it, and I have offered to return the rent paid as a gifted deposit at completion.

My question is will I pay CGT or income tax on profits from the sale?

bd6759
Posts: 3109
Joined: Sat Feb 01, 2014 3:26 pm

Re: Income Tax or Capital Gains Tax?

Postby bd6759 » Sun Jun 04, 2017 11:20 am

As long as the evidence points to be it being acquired as an investment, it will be subject to CGT.


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