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.
- Can an owner hold company money 95 2
- Windows 10 anyone? 216 5
- Digita Accounts Production Advanced - general perception 345 10
- Entrepreneurs Relief, and then new company 411 8
- Bankstream 1,081 25
- Barrister "M25 Patch"? 289 3
- Benefit in Kind 194 7
- SDLT 296 8
- Is self-employment "another job" for PAYE 146 1
- Dutch Accountant 427 1
- Locked Out of HMRC Online Account - HMRC Not Responding 117 1
- FACTA form help with CRS definitions for SSAS 196 4
- Is HMRC Basic Tools basically wrong? 815 4
- Is Xero payroll as rubbish as I suspect it is? 1,616 34
- Restricted interest relief 130 2
- Disengagement Help! 586 15
- Digital tax accounts - what do we expect? 901 16
- Renewals on property rental business 104 1
- Not a question - just a POI 238 3
- MVL 104 2