CGT on property flipping

I have read in many places that property flipping is not considered an investment and therefore CGT is not applicable but can't find anything about this on government sites. If an employed individual purchases a second property and then later sells it, having never let it out or resided there and generates a profit, this would not be liable for CGT? Please can you confirm if this is correct and if there are any parameters around this such as time constraints etc.

Hi,

There is no definitive guidance on when you cease acquiring and disposing of properties as an individual, on which you pay capital gains tax on the gains or commenced doing so as a trade,

where you pay income tax on the profits.  Each case would need to be reviewed on it's own merits.  If the purpose is to buy and sell property for profit (you’re a property developer, for

example) you do not pay Capital Gains Tax when you sell a property. Instead, you pay Income Tax - if you’re a sole trader or partner.

Thank you.

Not HMRC...if you did this once you are not trading and its liable to CGT...its not a repetative transaction, and is liable to CGT not IT. If you do this more than once and then regularly there is a case for trading rather than capital gains... https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim20205 either way there will be tax due, just depends under which tax rules.