Short term Buy-to-Let – What would HMRC say?

by Readers Question

10:06 AM, 3rd December 2014
About 4 years ago

Short term Buy-to-Let – What would HMRC say?

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Short term Buy-to-Let – What would HMRC say?

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

Stuartwhat if



Comments

james pearce

11:11 AM, 3rd December 2014
About 4 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.

Ian Ringrose

13:07 PM, 3rd December 2014
About 4 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.

Colin Dartnell

14:33 PM, 3rd December 2014
About 4 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.


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