10:03 AM, 6th June 2022, About 2 months ago 11
Hi all and thanks for having me on the forum. I am a first-tie developer having sold my London property and with £450k in the bank, I bought some land in Kent and obtained FPP.
I have just finished building the house which has been valued at around £1-1.2 M. I did need to borrow £100k to finish the property, a loan secured on the house.
I am now planning a second build, however my partner doesn’t want to rent whilst the new house is going up and has suggested that we buy a flat outright (for around £300k), to give her a sense of permanency, which we could also use as a security if we run out of money to build.
My question is in regards to CGT are we better off NOT having that theoretical flat and renting for 18 month thus circumventing CGT (legally) or is it an asset?
We believe that we can make another profit of around £400k with the opportunity we have in mind. So renting isn’t a bad option. Any thoughts at all?
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