Purchased a property 8 months ago, spent 3 months fixing/upgrading, tenant moved in Q4 last year then moved out Jan this year complaining of damp issues, stayed about 3 months, If I sell now rather than incur expensive damp treatment and re-let am I on safe ground treating this as a property investment and not a property trade
Thanks
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need to consider
'badges of trade'....but on the limited info (assuming no other properties being worked on) then investment.
Some questions amongst many to consider
How long was lease to tenant, was the term longer than their occupation or was it initially only let on three month lease, if so why such a short term?
How was funding obtained, if bank funding what was proposition that was placed before bank? Examine correspondence.
Background of party undertaking project, past history of such projects etc.
Plenty more to establish whether or not trading intent e.g.
Did CIS registration take place?
Was a trade intimated to HMRC?
Sounds like investment
Thanks for the responses so far. Cash purchase with the intention to rent out for at least 12 months, tenant signed up for 6 month AST then asked to be released from obligation as damp and condensation were making children Ill. I Agreed to this as I am a nice landlord. Now thinking I should cut and run as this property has issues that could be expensive to fix, I also rent out 4 other properties so I can demonstrate I am an investor and not a trader Not cis registered Not had the quote yet to fix the damp so this may sway my decision just wanted some views to help me decide how to proceed
Sounds like investment, cannot see trading intent.