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Where Taxpayers and Advisers Meet

CGT or Income Tax?

ck_uk
Posts: 8
Joined: Wed Jun 10, 2015 4:17 pm

CGT or Income Tax?

Postby ck_uk » Mon Oct 26, 2015 1:05 pm

Hoping someone can help. We have recently sold a second property which was owned for 3 years as a BTL, but never actually let (long story).
We expect to pay CGT on this.

We have just taken on another property which needs full renovation. At this stage we don't know whether we'll end up living there or sell once finished. If we sell, will this be subject to CGT or income tax?

If deemed as income tax, is the "Taxable Gain" still calculated in the same way? i.e -

Taxable Gain = Sale price - Purchase price - Purchase costs - Refurbishment costs (improvements) - Selling fees

DCF
Posts: 36
Joined: Thu Mar 19, 2015 12:31 pm

Re: CGT or Income Tax?

Postby DCF » Mon Oct 26, 2015 1:31 pm

Depends if HMRC deem you are trading as property developers. Much is based on intention at the outset and what you actually do.


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