Hitchin New Build and Renovation

[Kim]

Hello

 

Just a Hi from a newbie.

 

I have a few questions but will put them into the right areas of the forum (hopefully)

 

Its been three years in the making and we started digging ground end of November with three weeks off for Christmas. 

 

Originally i was extending my house side and rear to transform a small three bed into a big 5 bed to have my babies in and stay a while. After lots of evaluation it worked out a little better to build a new house and only extend mine single story rear to improve communal space. Its taken a long time to get planning, split the deeds and get the Builders Mortgage sorted but we are well underway.

x

 

 

[Mr Punter]

Hi and welcome

 

Are you going to live in the new house or the extended one?

 

Make sure you take professional advice on VAT, CGT and stamp duty.

[newhome]

Hi Kim, and welcome to BuildHub. You’re brave taking on 2 projects at once! ? Do you intend to sell one of the properties once complete? 

[Kim]

Moving into the new build and renting out the renovation ? had a little Tax advice, no CGT as will be my residence, VAT exempt on New builds and no stamp duty on new builds. This will be our home. The residential mortgage on the renovation is sitting at a good LTV and will allow BTL after project, will convert to a BTL mortgage in 2 years when expires ?  Well I hope that's all right anyway

 

Thanks for saying i'm brave, but shitting it most of the time ?. Especially when an unexpected £3500 bill comes in for something Building Control missed ? if they don't catch it then the builder and I sure as hell aren't ?

[newhome]

Well the new residence should have no CGT if you move into it and make it your primary residence but the old property will become liable for CGT on any profits when it's no longer your primary residence and you will become liable for tax for the income received as a landlord I imagine.  

 

When you say Building Control missed something what do you mean? I've always considered Building Control to be more about inspections ensuring compliance to building standards than to find gaps in a design or whatever?

[Kim]

oh i hope the other one doesnt mean i have to pay CGT until i sell it? it was my primary residence for over three years.

 

 

[newhome]

59 minutes ago, Kim said:

oh i hope the other one doesnt mean i have to pay CGT until i sell it? it was my primary residence for over three years.

 

 

 

You have 18 months to sell one property that was your PPR when you move to another property. This is reducing to 9 months soon. You will likely become liable for CGT from that point when you come to sell but you need to take professional advice.