Stamp duty - flip property

[IceBoy]

Hi All,

Looking at purchasing a 1 bedroom flat to fix up and sell.

Q. When I pay stamp duty, on purchase, can this be claimed back against my profit when I come to sell within 12 months?

Iceboy

[Jockman]

Follow the path that applies to you....

[Jockman]

As for the stamp duty reclaim...why would they let you?

[anonymous-user]

I must have completely misread the question sorry - unless it has been edited.

When you say "reclaim" - do you mean offset against any CGT liability?

[Jockman]

Just read this....."The good news is that you can claim back the stamp duty by offsetting it against any capital gains tax liability when you sell"

[IceBoy]

desolate said:

I must have completely misread the question sorry - unless it has been edited.

When you say "reclaim" - do you mean offset against any CGT liability?

Yes this is what I meant.
IceBoy

[TROOPER88]

IceBoy said:

Hi All,

Looking at purchasing a 1 bedroom flat to fix up and sell.

Q. When I pay stamp duty, on purchase, can this be claimed back against my profit when I come to sell within 12 months?

Iceboy

Hi
For all of you mentioning CGT I'm afraid to say that this is incorrect.

If you are purchasing the property with the sole intention of making a profit (you state that you intend to carry out works and then sell) then this is seen as a business transaction. This is therfore not seen as an investment but trading and income tax and NI should be paid.

Tread carefully....

[Jockman]

Good Point, Trooper. Not a lot of info to go on tbh - first purchase, 2nd property, keeping PR - but as you say he may wish to rethink the strategy and perhaps even live in / rent it for a bit.

[Alpinestars]

IceBoy said:

Hi All,

Looking at purchasing a 1 bedroom flat to fix up and sell.

Q. When I pay stamp duty, on purchase, can this be claimed back against my profit when I come to sell within 12 months?

Iceboy

Yes.

By "claim back", I assume you mean added to the cost of the property for the calculation of the gain/profit.

[johnfm]

'nature of a trade' so I doubt think CGT comes into it.

[Alpinestars]

johnfm said:

'nature of a trade' so I doubt think CGT comes into it.

Depends. As a one off transaction, HMRC has taken different views. Most i
Inspectors in this situation would try to focus on intention from inception - and that's not black and white.