Pounds 40,000 Profit and No Tax? Dream On ; Ask the Experts

Summary

---

S. R. writes: My son bought a house, improved it and sold it for Pounds 40,000 profit. He does not receive a tax return and as he has no other work, he believes he does not have to pay tax on the profit. Is that correct?

J. W. replies: It depends on several factors, including his intentions when he bought the house and if he lived there. For example, if he bought solely to make a profit, he will have to pay income tax on the gain after taking account of improvement costs. If he can show that profit was not his main motive, he would have to pay capital gains tax.

See the full content of this document

Extract

---

Pounds 40,000 Profit and No Tax? Dream On ; Ask the Experts

However, if he lived in the property...

See the full content of this document

---