~cathy~
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I strongly suggest you seek advise from an accountant or tax adviser as this can be a complicated area and the Revenue will love to challenge you on this one.
The property will be classed as your principal private residence for the period until the actual divisions in the property were made. (i.e you can no longer class all of it as your house, as the flats will have separate access). For this period, there will be no capital gains tax due due to the PPR relief.
However, once the flats have been converted, assuming you still live there, only one flat can be you principal private residence, and therefore only a fraction of the gain (1/no flats) will get PPR relief.
Another aspect is the timing of the sale, if it is within three years of the conversion, you *may* be able to claim full PPR relief as normally the last 36 months is always treated as PPR if you lived there at some point before this. I'm not sure if the Revenue have any exceptions to this rule.
Your accountant / tax adviser will be able to advise when the PPR election should be made as there are other factors that may be able to be taken into account to reduce the tax. |
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agius1520
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You make money you pay tax, simple as that. |
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Sean F
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I know why you should want to but my answer as a tax payer is why should you? If you have developed a property for profit then you should pay the tax that is due to the government. Shame on you. I expect that you rely on the N.H.S, the Police, the basic infrastucture of the country etc. If this is the case pay your taxes. |
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ANDREW H
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Dont pay it over & go to prison |
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Jackie B
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If you were/are living there then its tax free. Also cost of work and materials and legal costs are all deductable. Theres a book called 'how to avoid property tax' available on the internet. oogle 'tax cafe'. This book is also tax deductable. |
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beverley.newman1@btinternet.com
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i believe you can "roll over" any profit onto a new developement without penalty but suggest you talk to an accountant to advise you. |
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simjam31
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As far as i know a lot of other developers keep them for ten years before they sell them remortgage them based upon the " converted " value to take out some money from the profit.
I understand that capital gains tax is reduced after ten years and hopefully the price of your property will have gone up during the ten years. |
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lclarke504
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Taper relief means that for every year you hold the property you are liable to pay tax on less of the profit, you can also offset the profit against any any capital losses you may have made in previous tax years
If you have set up a company to do the conversion and sale you will be allowed greater taper relief and also rollover relief where any profit can be ploughed back into another asset for the business here it gets more difficult depending on what sort of asset you buy. |
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minormatt
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Why dont you say that you lived there before the convertion. You need to see a solicitor. |
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