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.
- SATR - ommission of capital gains 56 1
- Recourse to Accountant for incorrect accounts 2,250 19
- Scanners 162 4
- Overdrawn Directors Loan Account 69 1
- ethical- to continue to act or not? 148 5
- Solar panels - VAT and Capital allowances 227 3
- Recharge for private use of a company car 399 9
- Payment plans for clients 100 2
- General rule: Evidence that the customer is in business 224 1
- Do most of you still use MS Office? 226 7
- Are any of you agents for doctors? 390 2
- Should I move back home away from my office? 437 9
- P60 or payslips? 88 1
- Property income in different capacities 99 1
- IHT dilemma 1,382 21
- Warning for freeagent accountants using payroll import 187 1
- IT advisory questions? 172 5
- Entrepreneurs Relief 793 44
- Has anyone else come across VAT account suspensions? 135 1
- Ceasing in membership of ATT 526 7
- Auto enrolment excuses 1,157
- Feedback on accounts production software for IFRS 796
- Add T&Cs to Sales Order in Sage 486
- Digita Hosted Software 320
- Credit where credit's due....... 270
- Director phone costs 231
- Buying goods in US and selling them to company in US 226
- What to say to Tom, Dick and Harry... 193
- Flat rate VAT- other income calculation 152
- Double taxation relief - same income, different individual 135