Starting a property development business and tax deductibles?Make Text Bigger
Hi All, I’m looking at getting into property development as a business, having done the last few residential properties I have lived in myself.
As it would be “quick flips”, rather than keeping for rental income, a limited company is definitely going to be the best way to go from a tax perspective (from what I can tell).
What I cant seem to find anywhere, and apologies if its already been answered here, is what I can, and cant, put through the company relating to the goods I purchase. The closest I’ve found is relating to the property being unoccupied for 3 or more years, reducing VAT to 5%. Whilst this would be great, the likelihood of that property purchase is going to be small.
So for example:
All labour costs are £0, as they will be completed by myself. I spend £5,000 on a kitchen. What, if anything, can I put through the company? Is the only advantage that I’m buying goods with money I’ve yet to pay tax on, as its being reinvested?
Obviously I will seek professional advice before commiting to anything, just doing what research I can first.
Thanks in advance
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