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Property developers, are you ‘investing’ or ‘trading’?

The tax consequences of investing in a home or property in hopes of ‘doing it up and flipping it’ and ‘acting as a property developer’ can be brutal, and you don’t want the HMRC to decide that your actions should put you into the heavier tax burden of a ‘trader’.

So which rate should you be paying, the 18% (or 28%) capital gains tax or the 20% (or 40%) marginal rate for an unincorporated business? If you’re not sure, we should really sit down for a talk!

Landlords

Bournes Lettings Services provides full property management services to private landlords to protect assets and create long-term sustainable tenancies for our tenants. To learn more, click on the links below:

Rent Collection Finding a tenant End to end property management