gunner Posted March 11 Share Posted March 11 We purchased a plot with planning for 2 dwellings a few years ago, we built a house for ourselves and after my mother in law was widowed we decided to build a bungalow for her so my wife could look after her more easily. Mother in law has now changed her mind and is adamant that she wants to stay in her own house and we will sell the bungalow. This will make us liable for CGT on the sale, can I claim for my own labour against CGT, if I employed someone to carry out the work I have undertaken I would be able to deduct their bill from CGT, so I'm hoping I can deduct a reasonable wage for my own labour, has any one else been in this situation? Link to comment Share on other sites More sharing options...
IanR Posted March 11 Share Posted March 11 49 minutes ago, gunner said: so I'm hoping I can deduct a reasonable wage for my own labour, has any one else been in this situation? I'd say not. If you'd paid someone, then there would have been employment taxes/NI that would have been paid on that wage, which HMRC hasn't received. You should take advice though, since you will have now developed for profit, HMRC may feel the gain should be treated as income rather than a Capital gain. Link to comment Share on other sites More sharing options...
Declan52 Posted March 11 Share Posted March 11 What about renting out it and then it stays in the family and later on your kids, grand kids have a home to live in when they are ready. Link to comment Share on other sites More sharing options...
AliG Posted March 11 Share Posted March 11 17 minutes ago, IanR said: I'd say not. If you'd paid someone, then there would have been employment taxes/NI that would have been paid on that wage, which HMRC hasn't received. You should take advice though, since you will have now developed for profit, HMRC may feel the gain should be treated as income rather than a Capital gain. I agree with the first point, if you wanted to claim your own labour then you would have to report it as Income which would carry a higher rate of tax than CGT. On the second point you are not intending to be in the business of property development, so I would expect it to be CGT and not income tax, although HMRC can always disagree. Link to comment Share on other sites More sharing options...
ProDave Posted March 11 Share Posted March 11 How similar are the 2 dwellings? Any mileage in living one one for a few years while you finish the second, then sell the first and move into the second? Link to comment Share on other sites More sharing options...
nod Posted March 11 Share Posted March 11 Unfortunately you can’t claim for your own time Link to comment Share on other sites More sharing options...
SteamyTea Posted March 12 Share Posted March 12 Have you got children? Get then to invoice you, then charge then board at lodging to an equal amount. Immoral labour maybe, especially if you leave their inheritance to an old folks home (which seems, inadvertently, to be what my mother is doing), but you may save a few quid to spend on decent holidays. Link to comment Share on other sites More sharing options...
bassanclan Posted March 13 Share Posted March 13 Children need to be 13 to work Link to comment Share on other sites More sharing options...
Pocster Posted March 13 Share Posted March 13 If only ; I could claim 11 yrs of Labour … Link to comment Share on other sites More sharing options...
newhome Posted March 17 Share Posted March 17 Also note that you won’t qualify for the VAT reclaim if you are not building a house for you or a family member to live in. Link to comment Share on other sites More sharing options...
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