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TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15946
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Is there any reliefs available for a property that was

Resolved Question:

Hi,
is there any reliefs available for a property that was purchased and subsequently sold after major works. the client did have intention to move in but didn't. so there is no PRR, tried that with HMRC.
any Roll over or Hold Over, anything.?
I personally don't think there is and the client will be stung with a fat CGT bill.
regards
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.

Hi. My name is*****'m looking at your question now and will post my answer or ask for more information here in a short while.

Expert:  TonyTax replied 1 year ago.

I'm afraid not.

If the property was sold soon after the works were completed, your client may be taxed on his profit as a property developer as opposed to CGT by HMRC. I'd be inclined to disclose it as a gain given that there was an intention to live in the property.

I hope this helps but let me know if you have any further questions.

Customer: replied 1 year ago.

hi,

thanks for that.

would it have made any difference if the property was in a Ltd company.

regards

Expert:  TonyTax replied 1 year ago.

If the property is already in a limited company, then the company will pay corporation tax on the profit. If it isn't, then putting it into a company will give rise to a gain if the seller and buyer (the company) are connected.

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