Property Developers Tax

[ans]

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

 

What's grey about that? Looks pretty black and white.

[FCMR]

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

 

What's grey about that? Looks pretty black and white.

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To make it simple for you, buying and selling to make a profit would be classed as a business and taxation does then apply.

[When Skies Are Grey]

I still dont understand how the disposal of a capital asset can be treated as income? Seems somewhat incongruous to me.

[ans]

I guess if developers are using that as their sole source of income, they need to be taxed somehow.

 

I know I just sold my house and they aint getting any capital gains tax out of me, no way.

[When Skies Are Grey]

I think the IOM is on a bit of shaky ground if there are complaints about taxation on the buying and selling of property when one good use of an IOM Exempt company is to buy and sell property especially where a CGT charge would normally accrue.

 

Then if we go changing the tax rules in relation to this arent we differentiating between resident and non-residents, which goes against Mr Bell's overall plan of non-harmful tax rules between residents and non-residents!

[crumlin]

Whats to stop the Likes of Dandara selling the houses they build to an other Company at cost or a slight loss, resulting in paying no tax and then the other company sells them on again, paying no tax.

Or example Dandara ltd build houses that cost them £100000.00 to build, Mr Tynan sells them to his wife for the same cost. Mrs Tynan then sells them to Joe Public for £150000.00 would she be tax exempt on the profits ?

[simon]

If you own a property on the IOM and build/buy another and sell within two years, you are Taxed at 18% on the profit. Fact

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[Observer]

I think the IOM is on a bit of shaky ground if there are complaints about taxation on the buying and selling of property when one good use of an IOM Exempt company is to buy and sell property especially where a CGT charge would normally accrue.

 

Then if we go changing the tax rules in relation to this arent we differentiating between resident and non-residents, which goes against Mr Bell's overall plan of non-harmful tax rules between residents and non-residents!

<{POST_SNAPBACK}>

Totally agree with that post - no level playing field.

[Slim]

All I can add is that the official line of the Income Tax dept is that there is no tax on profit from property, unless it's your business, then there is.

 

Quite why there aren't guidence notes about this, I'm not sure. It's a bit of a bad do if you buy a property and won't know if you're liable for tax when you come to sell it.

[crumlin]

Something is wrong with the system if Joe Bloggs the Builder goes and buys a plot of land and builds a house, sells it at a profit and pays tax when other companies can buy and sell many houses without paying tax. Whats the differance

[Observer]

Tax exempt companies do not trade locally.

[When Skies Are Grey]

Tax exempt companies do not trade locally.

<{POST_SNAPBACK}>

 

Exactly....neither can they own IOM situs assets or be beneficially owned by anyone ordinarily resident in the IOM.

[Observer]

Taking the place of the old non resident companies but bringing greater control and accountability by way of local resident company officers :-)

[Declan]

Something is wrong with the system if Joe Bloggs the Builder goes and buys a plot of land and builds a house, sells it at a profit and pays tax when other companies can buy and sell many houses without paying tax. Whats the differance

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Wouldn't the company get taxed on any profits it made through Corporation Tax?

 

I'm a bit confued by FCMR's case -

 

His trade is building. For his own use he built a house. He never moved into it. And sold it when it was built. How can the taxman possibly view that as a business transaction?

[When Skies Are Grey]

Taking the place of the old non resident companies but bringing greater control and accountability by way of local resident company officers :-)

<{POST_SNAPBACK}>

 

That was the utopian plan...but when you used to be on about 700+ companies it was a bit difficult