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Tax liability on property renovation where its partly sold

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    Tax liability on property renovation where its partly sold

    Saw an run down property that would be perfect for renovation and sell on.

    What's the tax situation in the following scenario?

    Buy a house, split into 2 flats, renovate both flats and sell one.
    Keep the other flat as an investment income.

    How is capital gains worked out in these circumstances?

    Any benefits to doing this and selling the second flat next year to benefit from the annual CGT allowance?

    thanks

    #2
    Do you want us to convert it for you as well?

    https://www.property-tax-portal.co.u...rticle99.shtml
    'CUK forum personality of 2011 - Winner - Yes really!!!!

    Comment


      #3
      cheers NLUK.

      Think I'll be ok with the conversion :-)


      Originally posted by northernladuk View Post
      Do you want us to convert it for you as well?

      https://www.property-tax-portal.co.u...rticle99.shtml

      Comment


        #4
        You got off lightly - he normally questions everyone as to whether they've asked their accountant...

        If you plan to live in or rent out one of the flats, remember to treat the project as two separate dwellings from day one. E.g you get an electrician in to rewire the whole building, but you will need to split the bill into two distinct parts, or HMRC will have some fun at your expense. Rinse and repeat for everything else you might need doing.
        His heart is in the right place - shame we can't say the same about his brain...

        Comment


          #5
          Originally posted by Mordac View Post
          You got off lightly - he normally questions everyone as to whether they've asked their accountant....
          Which to be fair is a better solution that a couple of links found on Google really

          He'll have to split them at the land registry and deal with the leases which he'll need help with as well. Not straight forward doing house to flat conversions.
          'CUK forum personality of 2011 - Winner - Yes really!!!!

          Comment


            #6
            Originally posted by northernladuk View Post
            Which to be fair is a better solution that a couple of links found on Google really

            He'll have to split them at the land registry and deal with the leases which he'll need help with as well. Not straight forward doing house to flat conversions.
            Which is why I said:

            If you plan to live in or rent out one of the flats, remember to treat the project as two separate dwellings from day one.
            Asking a contractor accountant isn't going to help, he needs specialist advice. I think we're in agreement on this one.
            His heart is in the right place - shame we can't say the same about his brain...

            Comment


              #7
              Originally posted by Mordac View Post
              Which is why I said:



              Asking a contractor accountant isn't going to help, he needs specialist advice. I think we're in agreement on this one.
              Yup.
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Originally posted by Mordac View Post
                Which is why I said:



                Asking a contractor accountant isn't going to help, he needs specialist advice. I think we're in agreement on this one.
                Originally posted by northernladuk View Post
                Yup.
                and i ,too, agree!
                bloody hell! - is this a CUK first??

                Comment


                  #9
                  Originally posted by BR14 View Post
                  and i ,too, agree!
                  bloody hell! - is this a CUK first??

                  I don't know whether it's a first, but it could well be the last...
                  His heart is in the right place - shame we can't say the same about his brain...

                  Comment


                    #10
                    Originally posted by Mordac View Post
                    I don't know whether it's a first, but it could well be the last...

                    Comment

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