cgt tax

[benji]

would i have to pay any tax on proprty price gain if i am buying new build properties on a new development, where tenants are insitu and i am planning to sell under 2 years time hopefully price of property will have gone up.

i have the chance of buying vacant new builds on the same development instead but but would prefer tenanted ones if no cgt ? tax is payable.

[Tax Accountant]

Sorry, all properties not used as your only or main residence (PPR relief) are chargeable to CGT. It doesn't make any difference whether they have been pre-let or not, or whether they have bought and sold off-plan.

You of course have the use of your annual exempt allowance which for 2005-06 is £8,500. Taper relief is available for properties owned for at least 3 years. This starts at 5% and increases by 5% for each year thereafter until it reaches a maximum of 40%. Any excess gain is added to your other income and gains of the year of disposal and taxed according to the tax-bands they fall into.

Ramnik