Property Ladder Tax

[DimPrawn]

http://www.telegraph.co.uk/finance/p...x-evaders.html

According to further research by UHY Hacker Young, taxpayers who have bought and sold a number of properties over a relatively short period of time could face massive tax bills even if they have paid the correct amount of CGT.

This is because HMRC could claim that taxpayers who regularly carry out this type of activity are in fact engaged in a trade (property development) and therefore liable to income tax and National Insurance.

Mr Davies explained: "Taxpayers who buy, renovate and sell properties without letting them could be considered developers. Any gains would therefore be taxable as income. The difference between CGT and income tax at the moment would mean a massive increase in the amount of tax they would have to pay."


I reckon this is going to make quite a few "Sarah Beeny" types sweat.

40 or 50% tax versus 18%.

Ouch.

[Mich the Tester]

They are dirty kapitalist spekulators and they are taking the piss.

AtW

[doodab]

But if you buy a company, sack a few people, and sell it for a profit, that's taxed as a capital gain.

[Spacecadet]

I reckon this is going to make quite a few "Sarah Beeny" types sweat.

they're probably already sweating after half demolishing a perfectly good house, finding themselves £100k in the hole and suddenly realising that they don't have a clue about property development