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Capital gains tax avoidance.

Discussion in 'General Discussion' started by Mottie, 21 Jul 2017.

  1. Mottie

    Mottie

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    Just a general question here, obviously I'd get proper paid legal advice before doing anything, just getting some ideas that may help us come to a decision.

    My wife and I own a property outright that we currently live in. We also own outright a small commercial property that we are considering building a three bedroom house on - currently waiting planning permission but have been advised that it has a very good chance of success.

    Assuming we get the go ahead and build the property we'd like to eventually sell it however, if at all possible, we'd like to avoid, not evade, paying tax on the sale. We would particularly like to hear from anyone who has done something similar.

    We would consider living in it for say, 12-18 months after completion as our main home and letting out our existing house to our daughter and her boyfriend. In this case would (a) we be able to claim back all VAT paid for goods and services involved in the building of it and (b) would 12-18 months be a long enough period for it to be considered exempt from capital gains tax as it would be our main house?

    Or am I missing the bleedin' obvious?

    Thanks
     
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  3. JohnD

    JohnD

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  4. EFLImpudence

    EFLImpudence

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    Why do you think (a) would or should apply?
     
  5. Mottie

    Mottie

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    I'm sure I either read it on here some time ago or someone mentioned it. Couldn't find it so just did a Google. Looks like I can. https://www.gov.uk/vat-building-new-home/overview

    I do love these people that answer their own questions. :rolleyes: :whistle:
     
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  6. EFLImpudence

    EFLImpudence

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    I didn't know that.
     
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  8. I think that you have to live in the house longer than a year or 18months..? I thought it was at least 3 years. It's a really complex, like having percentage of tax paid for how long you didn't live in it etc..
     
  9. noseall

    noseall

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    Ask an M.P. They are experts at the dual home deception thing.
     
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  10. Ian H

    Ian H

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    Why don't you give the other one to your daughter?
     
  11. motorbiking

    motorbiking

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    is the commercial property owned by your business?

    your current plan will see you hit with second property tax. if you transfer the asset to yourselves as individuals.

    better to rent the flat from your business.
     
  12. Mottie

    Mottie

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    The commercial property is owned personally by myself and my wife and our company business rents it from us.
     
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