Short term Buy-to-Let – What would HMRC say?
10:06 AM, 3rd December 2014, 11 years ago
3
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What if…………
An individual buys one property, tidies it up and lets it. Then, after only about a year decides they need to sell the property.
The property has increased in value, lets say +40%, mostly due to the work done to prepare it for letting. Would HMRC be satisfied that it was simply a change of plan, or would they be likely to pursue the individual as having traded the property – requiring tax at less favourable rates than selling an investment property?
Many Thanks
Stuart
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Member Since October 2014 - Comments: 40
11:11 AM, 3rd December 2014, About 11 years ago
there was a thread on this the other week.
My understanding was as long as the property has been let at least once all is well.
Member Since July 2013 - Comments: 561
1:07 PM, 3rd December 2014, About 11 years ago
If you only do it once, then I don’t see the problem. But if you repeat many times, I expect the HMRC will decide that it was your plan after all.
Member Since May 2014 - Comments: 252
2:33 PM, 3rd December 2014, About 11 years ago
James is right, if you can find the thread, Mark said as long as it has been let for six months then you are okay.