10-04-2003, 09:45 PM
Quite often, I find people discussing UK tax laws cuz, they are ACCA students. I myself specialise in UK tax laws.
Ok here is my opinion.
Tax has alwasys been a grey area. Thats where we fight with Revenue and earn our fees.
But the scanerio under discussion is pretty much clear. There is no Capital Gains Tax (CGT) on buying and selling of house used by tax payer as his main and only residence (becuase of the PRR - Private residence relief).
Selling one house buying the second one and then selling the second one again no CGT... if the Revenue attempts to tax it,..block the atempt and you will win.
NExt stage is if it becomes habitual to buy houses for living and selling ,,, a good tax expert can help you escape CGT under law.
It is next to impossible to start buying and selling houses and remain self employed under schedule D case 1.... this activity will not come under schedule D, it will come under Investment income causing great problems of CGT.
Ok here is my opinion.
Tax has alwasys been a grey area. Thats where we fight with Revenue and earn our fees.
But the scanerio under discussion is pretty much clear. There is no Capital Gains Tax (CGT) on buying and selling of house used by tax payer as his main and only residence (becuase of the PRR - Private residence relief).
Selling one house buying the second one and then selling the second one again no CGT... if the Revenue attempts to tax it,..block the atempt and you will win.
NExt stage is if it becomes habitual to buy houses for living and selling ,,, a good tax expert can help you escape CGT under law.
It is next to impossible to start buying and selling houses and remain self employed under schedule D case 1.... this activity will not come under schedule D, it will come under Investment income causing great problems of CGT.
