Property Trade or Capital Gain (CGT)

Could you please advise / point me to the relevant policies for the following: Purchasing a property, renovating it, then selling it for a profit. Under personal name. I already have a main (personal) residence so this would be a 2nd property. Would this be deemed as trading property or a capital gain? If deemed as trading property would this be subject to personal tax (20%/40%/45% tax incl the loss of personal tax allowance at 100K >) and is there a policy for allowable expenses?

Hi,

You would need to decide if you are flipping properties as a trade, based on the facts of the case. If you are, then the profits would be subject to Income Tax, using the tax rates you mention.

If this was a one off, then capital gains rules could be applied. You can see guidance here: 

CG15150P - Capital Gains manual: introduction and computation

Only improvements that enhance the value can be claimed as capital allowances.

Thank you.