Redevelopment – business or private? [money saving tips] [knock down]

Q: Myself and a friend on his purchase of a property and redevlop for future sale to make some money! Now many people are already doing this and I am curious if there are tax benefits or , either by purchasing the property in a new limited liability company, doing all the work by the book and then sell or perhaps the purchase of private property, but the work done by one company? It just a full scale – to rebuild, so the work just zero VAT rated and the other thing to say is that we probably will go and do another when it is finished, then take the money.
I hope this is ok one question in this thread. Thanks for reading

Chris – What is a day off?


A:I put Wagon Wheel wrappers in his socks, pants and shoes last week.

Lynzpower told me to do it though.


A:Much like my husband.

A:All work and no play is why I'm divorced Amicably I might add..

I got a puppy instead, He doesn't moan about me working all the time, He just pees somewhere when I upset him


A:All work and no play!

I recall reading now. Glad to hear, anyway


A::rolleyes: I've moved my business into a bigger warehouse, as if I wasn't a workaholic before, it's been almost completely consuming :rolleyes:

Sounds a strange thing to say, but too much business is as stressful as too little!:confused:


A:Do it privately, the sums of money simply aren't large enough to warrant a Limited company.

Where have you been? Don't tell me you have better things to do!


A:Do it privately, the sums of money simply aren't large enough to warrant a Limited company.

A:Mmm, you need to speak to someone who knows more than I do!

Wait and see here but also ask on the cutting tax board. You might get some more joy there.


A:I knew a message query wasn't as simple as it sounded!
I have a job, my friend doesn't. We will get the best available prices for materials in the trade anyway so that should make no difference. We are expecting this property to gain £30k – £50k after costs and expenses and whilst my friend could live in it for a short while, I could not, so how does that muddy the waters?

Thanks again

Chris – What's a day off?


A:I think companies are better geared up to avoid tax on decent sums of money. It depends on how much profit you stand to make and whether you have another job; I think companies are better geared up for tax benefits on career replacing sums of money.

If you have company, you can get trade discounts on materials but you can often blag these anyway or, equally, shop around, hard!

But if there's two of you, you have a CGT allowance of £9,200? each this year. So if your profit is less than £20,000 then it's simpler to go it alone.

Of course if you live in the property for a decent time period, you pay no tax at all on your profits, regardless of how much you make.


A:Sound like a great idea to me


A:Are people still doing this?

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