financing property development
Discussion
help! currently i am a small time property renovator. i do 1 at a time and move into them and and have all my mail sent there and stay for at least 8 months before selling so i avoid tax.
i feel i am not using my full potential, so the next stage is to do more than one at a time, but this will turn my tax free hobby into a business liable for tax.
how do any of you property delovopers finance projects ? and how do people finance property they buy at auction? and finally any tax saving tips?
i am very good at the actual costing/renovation side of things but not so good at the financial structuring side.i need to sort this area out.
mark
i feel i am not using my full potential, so the next stage is to do more than one at a time, but this will turn my tax free hobby into a business liable for tax.
how do any of you property delovopers finance projects ? and how do people finance property they buy at auction? and finally any tax saving tips?
i am very good at the actual costing/renovation side of things but not so good at the financial structuring side.i need to sort this area out.
mark
Eric , i have been told this before. how can i be carefull? how many in a row would look suspicious ? bit of a grey area.
Im just about to move again next weds, and am concidering turning the house into 2 flats and keeping them. How will i stand with this.
My accountant also confirmed that, if one day i decide to sell any of my buy to lets, the first 8k is tax free(per property per year), but if i 'move' in for a few months it becomes my main residence, and therefore i avoid tax? will there be a lomit on how many times i do this?
mark
p.s remember yonks ago i mentioned i am being investigated? ive got my meeting thurs with the revenue.
Im just about to move again next weds, and am concidering turning the house into 2 flats and keeping them. How will i stand with this.
My accountant also confirmed that, if one day i decide to sell any of my buy to lets, the first 8k is tax free(per property per year), but if i 'move' in for a few months it becomes my main residence, and therefore i avoid tax? will there be a lomit on how many times i do this?
mark
p.s remember yonks ago i mentioned i am being investigated? ive got my meeting thurs with the revenue.
unclemark123 said:
Eric , i have been told this before. how can i be carefull? how many in a row would look suspicious ? bit of a grey area.
Im just about to move again next weds, and am concidering turning the house into 2 flats and keeping them. How will i stand with this.
My accountant also confirmed that, if one day i decide to sell any of my buy to lets, the first 8k is tax free(per property per year), but if i 'move' in for a few months it becomes my main residence, and therefore i avoid tax? will there be a lomit on how many times i do this?
mark
p.s remember yonks ago i mentioned i am being investigated? ive got my meeting thurs with the revenue.
No. You have £9200 per year tax free capital gain, anything above that is taxable. You cannot carry the allowance forward regardless of whether you used all of that years allowance. It is definately NOT on a per property basis!Im just about to move again next weds, and am concidering turning the house into 2 flats and keeping them. How will i stand with this.
My accountant also confirmed that, if one day i decide to sell any of my buy to lets, the first 8k is tax free(per property per year), but if i 'move' in for a few months it becomes my main residence, and therefore i avoid tax? will there be a lomit on how many times i do this?
mark
p.s remember yonks ago i mentioned i am being investigated? ive got my meeting thurs with the revenue.
For you to move into and sell within 8 months would suggest that you put your properties on the market after only a few months of them being your PPR.
This will look very suspiscious to the taxman, particularly if it isn't a one off and you've made a substantial capital gain. There is a grey area but from you've told us I don't think Revenue will buy it tbh.
This will look very suspiscious to the taxman, particularly if it isn't a one off and you've made a substantial capital gain. There is a grey area but from you've told us I don't think Revenue will buy it tbh.
unclemark123 said:
help! currently i am a small time property renovator. i do 1 at a time and move into them and and have all my mail sent there and stay for at least 8 months before selling so i avoid tax.
i feel i am not using my full potential, so the next stage is to do more than one at a time, but this will turn my tax free hobby into a business liable for tax.
how do any of you property delovopers finance projects ? and how do people finance property they buy at auction? and finally any tax saving tips?
i am very good at the actual costing/renovation side of things but not so good at the financial structuring side.i need to sort this area out.
mark
I know a couple of people who might be able to help. IM me if you would like their details.i feel i am not using my full potential, so the next stage is to do more than one at a time, but this will turn my tax free hobby into a business liable for tax.
how do any of you property delovopers finance projects ? and how do people finance property they buy at auction? and finally any tax saving tips?
i am very good at the actual costing/renovation side of things but not so good at the financial structuring side.i need to sort this area out.
mark
It's all a matter of how it looks. Tax isn't always about adhering to the letter of the law. Habit and intent can sometimes overide simple application of legislation.
The fact that you are being investigated indicates that maybe the Revenue have already cottoned on to some unusual behaviour parrerns regarding your peoperty dealings.
I hope that you will have a professional advisor with you at this meeting. Otherwise, the Revenue may try to wipe the floor with you.
The fact that you are being investigated indicates that maybe the Revenue have already cottoned on to some unusual behaviour parrerns regarding your peoperty dealings.
I hope that you will have a professional advisor with you at this meeting. Otherwise, the Revenue may try to wipe the floor with you.
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