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Where Taxpayers and Advisers Meet

Income tax or CGT

musty
Posts: 11
Joined: Wed Aug 06, 2008 4:00 pm

Income tax or CGT

Postby musty » Fri Dec 02, 2011 10:19 pm

Three properties were bought at a discounted price as buy to lets. Two have been let successfully but the third has not been let after 4 months. Meeting the interest on money borrowed is causing problems and the sale of the one unlet property will be necessary

If the unlet property is sold at a profit will the profit be considered as capital gains or as income tax resulting from trading in property?

pawncob
Posts: 4463
Joined: Wed Aug 06, 2008 4:06 pm
Location: West Sussex

Re: Income tax or CGT

Postby pawncob » Sat Dec 03, 2011 9:21 pm

Depends on your history. Probably CGT, but if you've bought/sold properties in the past it could be income tax rates.
With a pinch of salt take what I say, but don't exceed your RDA


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