Selling A Property

[Budlet]

I have bought a house which I intend to renovate and sell as quickly as possible. What are the tax implications on this?

[Gizmonster]

In a nutshell:
If it's your only property, you won't pay any tax on any profit made, although you may have to declare it as your place of residence - not too sure on this to be honest :(
If you own other properties (including your own home), then you're allowed a certain amount of profit before you pay tax. This allowance is your capital gains tax allowance and I think it's £11k for the tax year 2014 -2015.
So, if for example, you pay £60k for a house, spend £15k renovating it and then sell it for £100k - your total profit is £25k. You'll pay tax on £14k of this - the rate you pay will depend on whether you're a high rate tax payer or not.
See:
http://www.hmrc.gov.uk/cgt/intro/basics.htm

[Budlet]

Thanks for that. My main home is in my husband's name. This property is my name only. I am not doing it as a business, just gives me something to do.

[Gizmonster]

If you think you're not going to make more than £11k profit, you'll pay no tax.
If you expect to make more than £11k profit, you'd normally pay tax on anything over the £11k allowance.
However, seeing as this is your only property, I'm fairly sure you can get away with paying no tax whatsoever, even if your profit is more than £11k. I don't know if it's automatic, 'cos it's your only property, or if you need to register it as your place of residence.
Anyone else have any thoughts on this ??

[black_cat51]

but it's not her place of residence!
do you have any other income budlet?

[Budlet]

No other source of income. Do you have to be resident in the property for a certain period of time for it to be classed as a primary residence?

[black_cat51]

lol not if you are an MP!
tbh i'm not sure, but it sounds like you don't intend to live there at all?

[Gizmonster]

Taken from: http://www.hmrc.gov.uk/cgt/property/sell-own-home.htm

"When you sell or dispose of your own home you won't have to pay any Capital Gains Tax if you satisfy two conditions. For the whole time you've owned it both the following must apply:
•it's been your only home or main residence
• you have used it as your home and nothing else"

[Peter Pedant]

I always burn myself when I wander into tax threads.

I think it is pretty obvious you would have to pay CGT

You can, since it is capital, deduct capital expenses in the renovation.
and you may well be able to assign half the capital gain to your dear husband so that you use up HIS CGT allowance of £10k as well. [ you could twenty y ago ]

I dont think you could flip it a la house of commons
and get primary residence relief because you have to physically move into it. with hub. and it is nt a paper move either.

[mikey4444]

As it is not your main domicile, ie place of residence, then you will need to pay Capital Gains Tax of the gain.