Looking at buying a second house, are there any tax implications involved with this? Also @Hoddle Is A God if I buy one of our own Developments for £180k for example and said property has a value of £440k what am I liable for tax-wise? I'd expect some sort of CG tax on this, but what sort of bunse?
Yes, the rental income is taxable and you’ll have to do an annual self assessment. You’ll also pay capital gains on any equity increase when you sell.....assuming you tell them....
You mean if you have someone in it not paying anything to you? Then there’d be no tax liable as there was no income being generated, your rent free tenant wouldn’t be liable for any tax either. The tax man might not believe you like.
**** me ... you are "Verity The Vegan's Very Berry & Cherry and yet completely Non-dairy Shakes" aren't you? Can we call you Verity?
...also need to be a little careful on how you structure it all ... there are lots of tax rules that can impute market value (rather than price paid) on transactions between 'connected parties' ... particularly where there could be a tax angle e.g stamp duty land tax threshold...
My Mother in law is gonna sell hers and live in mine in theory, and I'll buy another and pay for both.
If his Ma in law is selling up and taking the cash, but he ends up paying the mortgage on a property she’s going to live in free gratis, that sounds like a ****ing piss take to me mate.
We don't know her age and Tel is probably just looking at it as a sound investment for the future anyway. We don't know how much is left on the mortgage, they might not be much left to pay. If I married, which I won't, I could see me doing what Tel is doing. He's just looking after his wifes mother and I think it's a nice thing to do.
The cash is my Mrs inheritance. I'll figure out a way for her mum to invest it. It's a bit more complicated than that but my mortgage is only £540 and I'll be remortgaging for a better rate soon. She babysits twice a week for free as well which is priceless for me cos I don't want strangers looking after my daughter. It's not certain anyway just an idea.
