subsales

B

bones99

Guest
Party A wishes to buy from vendor off the plans, with the intention of selling on to Party C when houses is completed, or close to completion. My understanding of this is as follows:
1) Party A has a contract to purchase property for €100,000 (say). Party A puts deposit of 10% down.
2) Party A also has a contract of aggreement with Party B for sale of property for €150,000.00.
3) Party A will not pay stamp duty.
4) Party B will also have a conveyency contract with the vendor.

This is my basic understanding of a subsale. Feel free to correct me. However some questions:
1) Does Party A pay CGT?
2) How does Party A get his profit from Party B?...Is this covered under their contract of aggreement?
 
As Party A never intended to hold onto this property and just planned to make a quick profit from it, it is very likely that the profit will be subject to income tax.

I don't understand the question about getting the profit from Party B.

You are right about the stamp duty.
 
If you search the forum for 'flipping' you will find plenty of discussion on this subject.
 
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