Rental or trading income / CGT or income tax?
My client has a large number of properties, all of which were refurbished and are now rented out.
Some are intended to always be rented out and are held in a 'Property Rental' partnership whilst others, which are intended to be sold at a gain, are held in a 'Property Development' partnership. As such, the expenditure incurred in the property development partnership on legal fees, mortgage interest etc are offset against trading income.
If the properties in the property development partnership are rented out prior to being sold, is it acceptable to treat this income as trading income and will the eventual gain/loss on the disposal still be a charge to income tax, rather than CGT?
Advice much appreciated, thanks in anticipation.
- Any Scottish members out there? 5,939 208
- Trademark Fun 106 5
- What's your best practice shortcut or 'hack'? 1,462 38
- Can I strike off a company by filing DS01 online? 131 2
- VAT Fuel Scale Charge for Fuel on Private/Personal Car 161 3
- Subsistence - god I hate it! 638 14
- How to issue a loan correctly? 182 2
- Would Director's dividends on non-voting C shares risk being classed as "earnings" for NIC purposes? 157 1
- Recycle old study books 352 9
- Share for share exchange 141 3
- Wind turbines 136 1
- Looking for a qualified accountant 511 2
- Locum Doctor claiming costs for Home Office 185 2
- FL Memo - Any Good 406 7
- VAT claim 357 6
- How to reclaim input tax from mixed use redevelopment? 163 6
- Am I allowed Rent A Room Relief? 403 9
- State Pension 1,214 10
- Late Corporation tax return 357 7
- The iIns and outs of VAT 380 6
- Raiders of the Lost Tax File 1,058
- Chartered Accountant in County Down N.Ireland 340
- IPP (International Pension Plan) income 288
- National Insurance 242
- valuation of intangible asset FRS10 and FRS20 222
- Joint construction arrangement CIS and VAT 221
- Cass 5 FCA Client Money Software recomendation 206
- Payments on account coded out?? 201
- Non Resident 159
- Franchise income and costs 141