Hello
I have a friend who is unhappy with his accountants advise. He inherited a property from the death of his father some 4 years ago. The property was empty up until now and he has recently refurbished it and is considering selling it now instead of renting it out. He has been advised that the Revenue will view this as trading income (even though this is the first property he is selling) and this will be taxed at his higher rate of tax 40% as he is a higher rate tax payer.
I totally disagree. With this view, it means that everyone who inherits a property should be taxed in this way which is absurd in my view as there are no indications towards a trade.
Is anyone aware of any tax cases where the Revenue have taken this approach. All the cases I know are that is is taxed under capital gains tax?
Thank you
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