Hi,
I'm researching building a three-bed house in between my two-bed, end-of-terrace house in Crumlin and the two-bed, end-of-terrace house next to it. There is sufficient room, and the City Council say it would meet with planning approval. The house next to mine will be coming on the market over the coming weeks. I am also in the process of lining up finance.
But, I am not sure how the profit I make after constructing and selling the house would be taxed. I presumed it would be capital gains tax at 20%. However, a solicitor told me that the revenue could choose to tax it at 41%, as normal income. As I'm projecting to make roughly 100k profit from the project, this is important.
I'm looking for guidance, to see if the proposal makes financial sense. Any other comments welcome.
Thanks,
GM
I'm researching building a three-bed house in between my two-bed, end-of-terrace house in Crumlin and the two-bed, end-of-terrace house next to it. There is sufficient room, and the City Council say it would meet with planning approval. The house next to mine will be coming on the market over the coming weeks. I am also in the process of lining up finance.
But, I am not sure how the profit I make after constructing and selling the house would be taxed. I presumed it would be capital gains tax at 20%. However, a solicitor told me that the revenue could choose to tax it at 41%, as normal income. As I'm projecting to make roughly 100k profit from the project, this is important.
I'm looking for guidance, to see if the proposal makes financial sense. Any other comments welcome.
Thanks,
GM