dpb

I suppose it follows that youd have to declare residency abroad..? - tax man always gets his chunk..

MikeCardiff

iTrader: (2)

True that you could live in it for a couple of months as your main residence and avoid the tax, maybe once you'd get away with it - do it twice in the same year and you're going to get HMCE jumping on you - daft as a lot of them are, they arent going to swallow someones story - and do you really want to take the risk of getting done for tax evasion ????

The OP wouldnt get away with it as he would have built the houses jointly with someone else, and would have got a new build mortgage to fund it - also he'd have to sell his own house, which I assume he is happy living in !

And re the other post - if you buy something with the express intention of selling it on, e.g. it isnt for your own personal use, then you are operating as a business, whether this is a house, a car, a bag of crisps it doesnt matter - if you then make a profit when you sell it, that profit is liable to tax. Trying to say 'I bought those 10 cars this year for my personal use, but didnt like any of them so sold them again, and just happened to make a profit' is TAX EVASION, and is a criminal offence.

If you already have another job, what you sell it is classed as a second income, and is liable to 40% tax on the profit.

You also need to register with the Inland Revenue as a business when you start selling for profit, even if you already have a day job - this is a legal requirement as well, and they arent too happy about people who dont do it.

Cant believe how many people dont know that you have to pay tax on profit you make just because it isnt their main income !!!!!!!

To be fair to Beanie though, she does now mention 'this is their profit BEFORE tax' on the programme.

When you take the 40% tax into account, you can see quite a few of these people on Property Ladder etc... arent making a lot of money on the houses they develop.

dpb

Its pretty obviously 98% entertainment - the no. of small time developers who make it big ( by being in the right place at the right time ) and then escape abroad to avoid the cgt must be minute

scoobyjimbo

edd

funny enough looking to do this at the moment, just had an offered accepted on a plot of land which has a block of 25 garages on and is around 1/2 acre in sized. It already had outline permission for 1 house and the council has indicated to me through initial talks that if i was to build 2 3 beds on it rather than 1 big 4/5 bed then i would get the permission. I already have builders lined up that i use for other houses i have had work done on that i rent out at the moment. Basically the land is 100k, i have costs of 10k to get it ready for building on and i have been quoted around 82k each to build these houses (large 3 bed detached with db garage and 3 receptions) - so it can be done, but this price is for a medium spec house, i was quoted around 95k each for a high spec. Anyway i have been told that once built they should market fir around 230-250k each, so all being well we should make a decent amount on them, I have gone into partership with my old man on this.
Good luck anyway, when you can find the right land etc you can make good money, but i am actually employing a contract PM to work on this for me as i have other business/work on my plate so he will take all the stress and report back to me. Its costing me 20k but it will be worth it..

J

unclebuck

That was my plan until the prices of plots suddenly went stupid in my chosen area (about 18 months ago). Glad I didn't go through with it now. It would have been a lot of hard work only to basically break even at the end of it!!

floatindolphin

my dad's doing this right now.


building a bungalow in his garden for about £60K and flogging it for £250K.

Him and my mum have to live in it for two years 1st to avoid getting *** raped by the taxman