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.
- Is Dropbox right for your client comms? Webinar 15 May 343
- Set up a company pension 280
- RTI Fees 265
- 2011 FHL loss & ITA 2007 s74a 241
- Where's our 10%? 239
- Driving sales growth 210
- UK Property Purchase by an overseas individual in own name 204
- HMRC Enquiry Assessments 204
- Cost of converting property - who pays? 200
- CIS late registration 195
- EIS 194
- Regiatration of a Trust 194
- Accounting for gift vouchers - paid for and donated 186
- Break up basis accounting 179
- Best structure 174
- Accounts production software for business SSC 170
- Property owned privately 165
- Membership of trade association - tax deductible? 162
- High Income Child Benefit Tax Charge Error? 154
- iQor recovering HMRC debts again 145



this is all a bit of a mix up