Disposing of by to let property

09/05/2019 11:36:30
I have purchased a house 9 months ago to add to my buy to let portfolio, but have been unable to let it. I now want to sell this property. I have made some improvements to it. Would this activity count as a property developer. Would this attract tax at normal rates or can this be sold paying Capital Gains Tax? if so do I need to inform HMRC before my next self-assessment?
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Re:Disposing of by to let property

09/05/2019 12:44:32

Thanks for your question.

The decision on whether you are a property developer or not would be down to you to decide.

In my opinion, from what you have mentioned - I would not consider this as property development and would consider this sale under Capital Gains tax rules.

Under Capital Gains tax rules you can either report this on your Self Assessment for the year of sale or you can report and pay this early, if you wish, using our real time reporting tool.

This can be found under our Capital Gains section on gov.uk here:

Capital Gains Tax

I hope this helps.

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