Slim Posted February 23, 2005 Author Share Posted February 23, 2005 Of course, that's just my personal opinion and you should always get your own tax advice, etc, blah, don't sue me Link to comment Share on other sites More sharing options...
simon Posted February 23, 2005 Share Posted February 23, 2005 Thanks Slim. Link to comment Share on other sites More sharing options...
Fatty Fatty Toad Boy Posted February 23, 2005 Share Posted February 23, 2005 Looks like a form of capital gains tax to me<{POST_SNAPBACK}> Yep. I suspect it's been put under Income Tax so that the Island can carry on saying it's Capital Gains Tax free. A bit like the House Registry Fee which is Stamp Duty by another name. When will it come into force? An 18% tax on the sale is going to be a shock for some of the Island's 'buy-to-let'ers. I wonder if there will be a rush to sell at knock-down prices? If it comes under Income Tax what happens if you're not a Manx resident? Link to comment Share on other sites More sharing options...
Slim Posted February 23, 2005 Author Share Posted February 23, 2005 Tax office said it was still in consultation, so still some time away. Not sure what that actually means in real time though, or if it will get in at all. Link to comment Share on other sites More sharing options...
crumlin Posted February 23, 2005 Share Posted February 23, 2005 I dont think the Taxman is that stupid to let people buy and sell houses for profit without getting a share. If you rent the house out you have to pay tax so whats the differance when you sell one, at the end of the day its an income of sort. Link to comment Share on other sites More sharing options...
Slim Posted February 23, 2005 Author Share Posted February 23, 2005 Renting is classed as income, selling something that you bought cheaper is capital gains: http://www.google.co.uk/search?hl=en&lr=&o...e:Capital+Gains Perhaps its relating to the new build, I'll check that with the tax office tomorrow. For now though, there is definately no capital gains on buying and selling properties. I've checked that today with both the tax office and an accountant. I'd like to get to the bottom of it though, who's your accountant fcmr? Link to comment Share on other sites More sharing options...
Slim Posted February 23, 2005 Author Share Posted February 23, 2005 There's a lot of things the manx taxman lets you do, it's why we get our bad press. There is no capital gains tax on the Isle of Man. I've just read all the procedure notes, nothing on housing profit. The only thing I can think of is its because your trade is involved in developing, but I will check again tomorrow. Link to comment Share on other sites More sharing options...
FCMR Posted February 23, 2005 Share Posted February 23, 2005 I am not a developer and my wife sure aint. Think of it you are sat in your own house and once a year you buy a house for say £150K you sell the house after a couple of months for £200k make a profit of £50k, you dont pay tax if it was that simple everyone would be doing it Link to comment Share on other sites More sharing options...
Slim Posted February 23, 2005 Author Share Posted February 23, 2005 But... it is that simple. There's no CG tax here. How else can I explain it? Link to comment Share on other sites More sharing options...
Slim Posted February 23, 2005 Author Share Posted February 23, 2005 Do speculators pay tax on profits ? <{POST_SNAPBACK}> In the UK, yes. In the isle of man, no. It's part of the problem with property prices here. That's what they're trying to fix with the consultation on the current income tax ammendment bill, as far as I know. Link to comment Share on other sites More sharing options...
FCMR Posted February 24, 2005 Share Posted February 24, 2005 Gov Document PN51-94 taxation of income from land or property. Link to comment Share on other sites More sharing options...
Slim Posted February 24, 2005 Author Share Posted February 24, 2005 Income from land or property, i.e. rent, not the sale of land. Read the procedure note (I have). It's talking about tax on rent, and capital allowances and expendeture allowances. Nothing to do with tax on profit when buying or selling land. Unless I've missed something? Link to comment Share on other sites More sharing options...
FCMR Posted February 24, 2005 Share Posted February 24, 2005 Income from land or property, i.e. rent, not the sale of land. Read the procedure note (I have). It's talking about tax on rent, and capital allowances and expendeture allowances. Nothing to do with tax on profit when buying or selling land. Unless I've missed something? <{POST_SNAPBACK}> Sent you a doc by email Link to comment Share on other sites More sharing options...
Slim Posted February 24, 2005 Author Share Posted February 24, 2005 OK, I've now talked to the Tax office again, to a tax specialist for personal trusts, and to two estate agents. They all confirm that there is (currently) no personal liability for selling property and making a profit. There is no capital gains tax in other words, although they all said the Government is trying to add one through the Income Tax Ammendment Bill currently in consultation. The only instance anyone can think of where you could be liable is if you declaired it as income on the books of a trading business, so I can only assume that's where FCMR's been stung. Sounds like he needs to shoot his accountant! Note, this is my personal view and is not intended as advice. I am in no way qualified to give financial advice. You need to get your own professional advice, blah blah, etc, no sue me! Link to comment Share on other sites More sharing options...
FCMR Posted February 24, 2005 Share Posted February 24, 2005 Yes I too have just come of the phone with the Tax office and they have said the same as you have posted, BUT they also agreed and confirm that it is a grey area, and will be being dealt with by Tynwald. What they would confirm is that the Property owner has to prove 100% that the property was NOT purchased with the sole intention of making a quick profit as this will be viewed as creating an income which has to be declared in your personel returns. Link to comment Share on other sites More sharing options...
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