Thank you for your question.
As it is your intention to build two houses and then put them on the market for sale, as far as HMRC is concerned you would be classed as property developer and not property investor.
That being the case, your profit would be trading profit and not capital gain and subject to income tax/national insurance (sole trader) and not CGT. Income tax rate of 20% and 40% would apply.
If you were to trade as LTD company, the profits would be subject to CT at 20%.
Interest paid on any loan associated with the build of houses would be tax allowable expense.
Depending on what your intentions are for the future and the level of profit you expect to generate from these two houses, you may be better off setting up a LTD company.
I hope this is helpful and answers your question.
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