Tax liability on property renovation where its partly sold Tax liability on property renovation where its partly sold
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  1. #1

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    Default 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. #2

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

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

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


    Quote 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

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    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...

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    Quote 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.
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    Quote 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...

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    Quote 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.
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    Quote 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.
    Quote Originally Posted by northernladuk View Post
    Yup.
    and i ,too, agree!
    bloody hell! - is this a CUK first??

    Entropy is NOT what it used to be.
    Inertia, however........................

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    Quote 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...

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

    Entropy is NOT what it used to be.
    Inertia, however........................

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