A question re. UK properties and taxation…?
Hello…
I wonder if anyone can help me?
I currently live and own a flat in Scotland and am currently building a home which I intend to move into once completed.
The question is in relation to what I do with my flat once I move into my new home… as I see it there a few options:
1: sell flat
2: keep flat, rent it out and at later date sell it
3: keep flat, sell newly built house after having lived in it for a few months, and move back into flat
4: keep flat, then sell flat and new house at later point at same time
Obviously the point is to not pay any taxation on either property. I do intend to live in my new home but just not sure whether to sell my flat straight away and am obviously worried that if I hold onto the flat that it might then be treated as a taxable asset on its sale.
Any information would be very appreciated regarding property law and taxation in regard to my situation.
Thanks for reading.
don’t take me as any kind of expert please but you build that house then sell it you will be liable for tax i guess on the profit you make which is 22% plus 8% national insurance unless you make more than say £30.000 profit then you pay 40%…..i have no idea how it works if you own two properties and dont rent it out? but i would suggest selling the flat and live in the new place so there is no tax involved……the house would be your pension if you like……if you do go along the renting road then you will have all kinds of expenses yearly to keep within health and safty and government rules ie gas checks,fire checks etc and at the very end when you sell the place you will pay tax……..i don’t give you advice but there must be a time limit before you can build another place and not be considered as a business…wait till that time elapses and build another place…..i understand the property prices are insanely high in scotland so don’t get caught in negetive equity if there is a down turn …..if you are prepared to pay tax on the revenue from a flat rented out plus all the other gunf and pay the tax when you finally sell it then that is the way to go as you will get a steady income after tax….as i said i am not the expert