There is a risk that a purchase, renovate and sell project such as this, particularly if completed within a narrow timescale and/or by someone in or connected to the construction industry, may be subject to income tax as a trading activity and may also carry attendant VAT & RCT implications.
Sounds like you need appropriate professional advice.
Not related to vendor. we bought a house beside us with land that was for sale. We are keeping the land and sold off the house.
There was no major construction work done. it was all by ourselves. We got Ranch railing put up and gates, tress cut down etc. we done all painting ourselves and all the internal work as in cleaning etc.
My main question is, we started the work once we paid the deposit, can the receipts we spent on the house be claimed before we actually became the owners?
My main question is, we started the work once we paid the deposit, can the receipts we spent on the house be claimed before we actually became the owners?
I reckon you still need professional advice, particularly if the sums in question are in any way significant. For example this suggests a part-disposal computation is needed: