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Law on House selling Tax
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If you buy a house to do up and sell what is the law about paying tax. TIA
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If you are not going to occupy the house as your only or main residence then you will have to pay Capital Gains Tax on any profit made over and above your annual Capital Gains Tax allowance (�9200 for this current tax year)
for example if you buy the house for �200k and sell it in quick succession for �230k, your profit would be �30k ...after taking off your capital gains allowance (�9200) your taxable profit would be �20800, and you would be taxed on this depending on other income recieved in the same tax year at either 22% or 40%.
If you hold onto the property for in excess of 3 years you will also be entitled to taper relief which will reduce the amount of tax payable.
Hope this helps
If you know values and time scales I could elaborate further
for example if you buy the house for �200k and sell it in quick succession for �230k, your profit would be �30k ...after taking off your capital gains allowance (�9200) your taxable profit would be �20800, and you would be taxed on this depending on other income recieved in the same tax year at either 22% or 40%.
If you hold onto the property for in excess of 3 years you will also be entitled to taper relief which will reduce the amount of tax payable.
Hope this helps
If you know values and time scales I could elaborate further
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