Property Ladder and tax

Most likely income tax - especially for those who said they were "property developers".

If the property is the main residence, and they stay there for a reasonable length of time, then likely to be exempt from CGT and IT. If done too often, the IR is likely to look closely.

I dont see why, as long as the property you are doing up is your only residence, you are exempt from CGT, surely? Otherwise there would need to be rules about how often you can buy and sell in a year or similar.

Because the IR could argue that the property was not being occupied as a "residence*, which they did in the case of Goodwin v. Curtis , and won.

Also, section 224(3) TCGA 1992 denies PPR exemption if the acquisition was wholly or partly for profit:

"(3) Section 223 shall not apply in relation to a gain if the acquisition of, or of the interest in, the dwelling-house or the part of a dwelling-house was made wholly or partly for the purpose of realising a gain from the disposal of it, and shall not apply in relation to a gain so far as attributable to any expenditure which was incurred after the beginning of the period of ownership and was incurred wholly or partly for the purpose of realising a gain from the disposal."

"Tumbleweed" wrote

Maybe exempt from CGT, but IR can still class you as a (serial) "property developer" and hence charge you **Income Tax** as a "trader"!!!

oooh thats nasty! Seems there are laws in place.

snipped-for-privacy@hotmail.com (Dominic) wrote in news: snipped-for-privacy@posting.google.com:

From watching this program on and off for the past couple of years, it seems most of the people involved have completely ignored all the advice they were given by the large-chested one and have by-and-large only made a little extra on top of what the rising market would have given them anyway.

I'm waiting to see this program in a falling property prices market - that will sort the men from the boys :-)

Rumor has it, that they 'can' the ones who follow the advice offered.

So am I, I was expecting it to be this series, Will have to wait for the next one now.

Tim

In article , Nick Pitfield writes

I think you will find it has been scrapped by then - it wont make good TV in a falling market, and it is unlikely that the victims would be willing to be filmed, and there wont be many, if any, of them doing it.

The best time to buy property to make real money is at the bottom of the cycle, or near it. The people who feature on these TV shows wont have the guts to do this deliberately, and those who have the guts to do it, wont want to be filmed.

It would be interesting to see what the price earnings ratio has been at the bottom of each cycle over the past 30 years, perhaps building in an interest rate relationship.

waffle...waffle....waffle

That, and the cheek of some who get friends and relatives to help them out. I wonder what answer they'd get if they did the same but for work? "Hey, I need to make some extra money, could you turn up at my place of work for a few days, then I'd get paid more"?

I think it will make a wonderful program :-)

But they will have been people who started in the boom, like about now. There are still lots of people who seem to think that the 20+% gains of the last 3 years are sustainable for the next 3 and are still keen to get into the market. Whether or not you think that there will be a crash or not most people with any sense should be able to see that they are at 'full value', but the people on PL are obviouls not from this set.

Problem is that you may have to wait some time. The houses that I have made my money on in the last 4 years were stagnant for the previous 5 (having crashed the year before that).

doesn't everybody want to be filmed :-)

Tim

"Tumbleweed" wrote

Tee hee hee!!

DETR Average Average Interest House Price Base EarningsPrice / as a % of (All) IncreaseRates Amount EarningsEarnings £ % %

took some sorting

I note that every time the earnings multiplier got to 5 it then started to go down until it reached about 3.3.

Though Interest rates were a lot higher

tim

In article , tim writes

So, if people buy on price related to earnings, we are at the peak. But, if people buy based on mortgage cost as a percentage of salary, prices could more than double

I could guess that it may be a combination of the 2 although, as interest rates are potentially volatile, whereas earnings are fairly steady, (if you've got a job), it may be that "we" will build in an interest rate rise.