17:13 PM, 8th January 2014, About 8 years ago 8
I was hoping someone could give me a bit of advice.
I am looking to diversify my investment portfolio (mainly stock market investments) by looking at investing for the first time at Property.
Having done a bit of reading, and looking at property prices (particularly down in London where I am based), I have come to the conclusion that the best approach to take is to buy a property to refurbish then sell on.
I have a fairly sizeable fund available, and the idea is to either buy something at auction.
As this is going to be my first project, I am planning on doing this as a personal project and not within the structure of a limited company. The plan is, that if this project goes well and I think I will undertake further projects to then consider setting up a limited company for further projects.
My first question to you all is:
(1) Having just moved back to the UK working overseas, I do not own my own property, but instead rent. What would be the tax implication on any capital gain profits I making on flipping a property after I complete refurbishments. If I do not own a residential property, would my Buy To Sell property be considered my primary residence if I continue to live in rented property whilst I refurbish, or would I have to live in the property whilst I am undertaking refurbishments. If the property is classed as my main residence, what are the capital gain tax implications for this? Would all profits not be taxable or is there a capital gains allowances.
(2) Second question, going forward, if the intention is to go down the buy to sell route, as opposed to Buy To Let, am I better off doing this as a Limited company. I have already read Mark Alexander’s post on his preferred method of doing Buy To Lets as an individual as opposed to a Limited Company, but wondered what the best structure would be for Buy To Sell.
Thanking you all in Advance.
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