I been working in Thailand for the last 4 years and now i am back in UK. On my arrival back to UK I get a letter from HMRC in relation to properties I bought & sold back in 2009. I had used an accountant to sort this out but he went bankrupt and ceased trading and I was unable to get my documents back(original papers) and then I left the UK for a teaching job in Thailand.
in 2009 I bought 4 properties and sold in the same year.
Property 1: bought for £130,000.000 sold for £170,000.00
Property 2: bought for £120,000.000 sold for £180,000.00
property 3: bought for £190,000.000 sold for £235,000.00
property 4: bought for £140,000.000 sold for £180,000.00
through the help of an local estate agent I was able buy these properties at low price due to the poor conditions. With help of the estate agent we ensure that the following conditions were met:
1) Properties were vacant at exchange
2) I was give access after exchange of contracts (Key Undertaking)
3) Carry out necessary work to improve the property
4) The estate agent would find buyers for the property with the condition that work will be done by completion statement
5) I was able to confirm through Solicitor Regulatory Society (SRA) that this is legal)
6) They are called back to back (most lenders stopped these after 2010
7) I would arrange a bridging loan in the unlikely chance that I cannot find a buyer on completion date.
9) I would then arrange a double completion....Seller A to Buyer A (Me) to seller B
Solicitor told to make it legal I would have to register is on my name first then then second buyers would register on his name.
I have all the photocopies of the documents e.g. bills for the work, key undertaking, I paid the stamp duty on my purchase, I register the property on my purchase.
Now I want to know will I pay Income Tax or Capital Gain Tax and also will I pay interest and will I pay a penalty.
I been given an deadline of 10th November to respond.