How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
75100385
Type Your Law Question Here...
Ash is online now

I live in rented accommodation as does my friend. Neither of

Customer Question

I live in rented accommodation as does my friend. Neither of us own a property other than the following:
We have pooled our resources and acquired a mortgage on a flat that we intend to renovate and sell for a profit.
Will we have to pay tax on the profit?
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

Will you be living in the new home or just a refurbishment and sell it on please?

JACUSTOMER-ksa4n4xm- :

I don't intend to but if I have to, how long do I have to be in the property?

Alex Watts :

In that case if it is not your main home then yes you will have to pay tax.

Alex Watts :

Whatever profit you make then you will need to split that.

Alex Watts :

You would pay tax on that capital gain.

Alex Watts :

You get £11,000 tax free before you have to pay taax

Alex Watts :

Then you pay tax on the balance

Alex Watts :

Can I clarify anything for you about this today please?

JACUSTOMER-ksa4n4xm- :

If one of us lived in the flat could Capistrano gains tax be avoided and how long would occupancy have to be to achieve this?

Alex Watts :

3 years.

Alex Watts :

Does that help?

Alex Watts :

If this answers your question could I invite you rate my answer before you leave today.


If the system won’t let you please click reply.



Please bookmark my profile if you wish for future help: http://www.justanswer.co.uk/law/expert-alexwatts/