Seaside resort renewal scheme

[acannydoitji]

I bought a property in 2001 with SRR tax incentives which I'm supposed to keep for 11 years to fully avail of tax breaks. Does anyone know what the implications are if I sell this property now? Will I have to repay some of the tax or vat that I was able to reclaim on the purchase price?

 

[gongey]

there will be a clawback of all allowances claimed. The amount will be taxed in the year of assessment in which you sold the property, as rental income. thus, if you've claimed 50,000 to 2005 this will be added to your other rental income/other income in 2005 and taxed accordingly.

 

[acannydoitji]

Thanks Gongey, sounds like I need some serious advice.

 

[gongey]

Unless you can afford to shoulder the tax liability I would not sell.