Sign up to get our free landlord tax strategies

To receive our seven FREE landlord tax saving strategies just simply complete the form below and the first strategy will be emailed to you immediately.

Sign up to get our free landlord tax strategies

Thank You!

Seven FREE property tax busting strategies reveal the secrets of how to legitimately beat the taxman and boost your property profits!
View All Questions

Will I pay Capital Gains Tax or Income Tax?

Question I am employed full time, my partner is self-employed as a Limited Company. We have bought a property to renovate as a personal venture (rather than business). We bought for £75K, spent around £15K including costs, and will sell at £110K. Will our profit be subject to Capital Gains or Income Tax?

Ian Says:

You do not state whether this property is your only or main residence, so I am assuming that it is not. In this case, you are undertaking a evelopment and hence are subject to income tax rather than CGT. This is a very complex area of tax law with a number of tax cases decided either way...if it is likely to be your only ever development then you could be treated as CGT, although technically you have started a trade of development. If either of you are connected to the building trade then it is definitely a trade.

Remember you should register as self employed within three months of commencement in order to avoid the £100 fine.

Case Study

Landlord Tax Secrets Get our SEVEN FREE Landlord Tax Saving Strategies - Guaranteed To Slash Your Property Tax Bills!
Click here for more.

Got a burning tax question?

Why not submit a tax question to our tax advisors

Ask a Question