Proprty refurbishment. Best set up

[RetSet]

I CBA giving a full reply, buty if you buy/ renovate/ sell that's trading, so no CGT allowance.

Look for property related forums on facebook

Go to your local PIN - Property Investors' Network, or PPN - Progressive Property Network meetings.

Educate yourself. That won't happen here.

HTH

[kolata]

Thanks guys.

One interesting question for accountants.

If a person buys a property and renovate it. Rent it out for 6 months @ 500/mt. Then sell it for 19 000 more.

The person has no other income that the rent - £3000
Taxable gain is 19000-11100 = 7900

in hmrc's example:

Example

Your taxable income (your income minus your Personal Allowance and any Income Tax reliefs) is £20,000 and your taxable gains are £12,100.

First, deduct the tax-free allowance of £11,100 from your taxable gain. This leaves £1,000 to pay tax on.

Add this to your taxable income. Because the combined amount of £21,000 is less than £31,785 (the basic rate band for the 2015 to 2016 tax year), you pay Capital Gains Tax at 18%.

This means you’ll pay £180 in Capital Gains Tax.

You pay 180 in CGT.

However if your income (rent + taxable gain) is less than 11000, do you still pay 18%@7900?

[northernladuk]

I don't think accoutants dare post in this section TBH.

[ChimpMaster]

Thanks guys.

One interesting question for accountants.

If a person buys a property and renovate it. Rent it out for 6 months @ 500/mt. Then sell it for 19 000 more.

The person has no other income that the rent - £3000
Taxable gain is 19000-11100 = 7900

However if your income (rent + taxable gain) is less than 11000, do you still pay 18%@7900?

This is elementary taxation so it'd be easy for someone to chastise you for not knowing this already, but I suppose at least you are trying to learn before diving into a property deal.

On your example above, there would be no income tax payable and 18% CGT on the 7900.

[kolata]

This is elementary taxation so it'd be easy for someone to chastise you for not knowing this already, but I suppose at least you are trying to learn before diving into a property deal.

On your example above, there would be no income tax payable and 18% CGT on the 7900.

Yep, I know there will be no income tax, I was hoping there wont be any 18% CGT also.

[ChimpMaster]

Yep, I know there will be no income tax, I was hoping there wont be any 18% CGT also.

There won't if you buy the property as tenants in common with your wife/husband and profit is £22,200 or less for the year.