Hi,
I have a query relating to a property im purchasing. I already have a 2 bed apartment as my sole residency, and this purchase will be my second property.
The thing is im not sure whether im going to move into this new property myself, or the more likely option is to renovate the property (needs some work), and sell it on next year maybe, at a potential profit (this is likely, as i am getting a very good deal on the property).
The KEY point is at no point will i be renting this property out, will be one or other of the above options.
Im not sure what my restrictions are here in relation to TAX. The purchase price is 170k and I would be hoping i could put some work into the house and sell it for 200k+ in 2014, if i dont decide to move in permanently.
Can you advise what would be the issues with income TAX here, if i kept the property for 6-12 months (without renting) and sold for a profit, am i liable for income tax?
Im happy to live and declare this second property as my primary residency if it means im NOT falling into the income tax bracket.
But im wondering where does that leave me with my current 2 bed apart, and going forward should i want to sell that, what are the TAX implications?
Just a little confused how the whole thing works RE second property. And as stated above i would like to try protect any profit i can make from the refurbishment and resale of this property, which i feel might be the likely option here for me.
Is declaring this new property as my primary residency my only way of doing so?
Thanks - D
I have a query relating to a property im purchasing. I already have a 2 bed apartment as my sole residency, and this purchase will be my second property.
The thing is im not sure whether im going to move into this new property myself, or the more likely option is to renovate the property (needs some work), and sell it on next year maybe, at a potential profit (this is likely, as i am getting a very good deal on the property).
The KEY point is at no point will i be renting this property out, will be one or other of the above options.
Im not sure what my restrictions are here in relation to TAX. The purchase price is 170k and I would be hoping i could put some work into the house and sell it for 200k+ in 2014, if i dont decide to move in permanently.
Can you advise what would be the issues with income TAX here, if i kept the property for 6-12 months (without renting) and sold for a profit, am i liable for income tax?
Im happy to live and declare this second property as my primary residency if it means im NOT falling into the income tax bracket.
But im wondering where does that leave me with my current 2 bed apart, and going forward should i want to sell that, what are the TAX implications?
Just a little confused how the whole thing works RE second property. And as stated above i would like to try protect any profit i can make from the refurbishment and resale of this property, which i feel might be the likely option here for me.
Is declaring this new property as my primary residency my only way of doing so?
Thanks - D