Selling Property Tax Liabilities

A

aamc

Guest
Hi,

Myself and two investors have acquired land and built a house on it. I now want to sell the land and house. What taxation are we liable to?? We did not form a partnership or business but all have contributed equal money to it.

How long to I have to live in the house to claim it was my principle home??

Are there any problems with splitting the money even if the land or property is not in all our names?

Cheers
 
Yes of course there are issues with splitting profits up like that - not least tax evasion which is a very serious matter.

Get professional advice
 
Who's name is the site in. Is it yours. YOu will have to be living in the house for a while to show that you are not claiming Private residence relief just to avoid paying taxes. It has to look legit from a revenue point of view.

Who built the hse. You are probably better setting up a partnership.

Your looking at gift tax on all sides.
If the land is in your name you got a give of 2/3 the money from the other lads for buying the site.
Then you got more when you built the hse.

And then if you sell it and give them money its a gift to them.

Oh what a mess. I'd definately go for prof advise nooooooooooooowwwwwwwww. Don't let it go on any further until its sorted out.
 
howareya said:
You are probably better setting up a partnership.
Click to expand...

The OP has already set up a partnership (perhaps unwittingly) even if this has not been formalised. I don't think gift tax is necessarily an issue unless the other investors are left permanently out of pocket. However there appears to be serious Income Tax, VAT, RCT and other issues which will need to be addressed as a matter of urgency.

This is a prime example of how things can go wrong when professional advice is obtained after rather than before an event.
 
Just to clarify. I will be doing this legit!

Thanks for the advise I will be getting pro help just wanted to get some idea what we are looking at.
We built the house between us equal money equal work time ect..
The planning and site is in my name. But I was told if I was owner-occupier we would not be liable to capital gains. Is this true??
And how long do I need to live there to qualify for this??


Keep your thoughts coming!
 
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