Tier 2 visa holder as property developer

[wtmlive]

I am currently Tier 2 visa holder with about 2 and a half years left to be eligible for ILR. I was wondering if anyone knows that I can buy properties in the UK and later sell them for a profit, I would, of course, be paying all the taxes and legal fees. Would something like this be allowed? It;s not exactly a business as I can buy properties for living in myself as well as buy-to-let. So I am not sure why something like this would not be allowed.
If I earn a profit from flipping properties will it mean that it's a business venture?

[tier2hunter]

If you have cash in hand or in account or bank is ready to give you mortgage, then absolutely yes.

[geriatrix]

So how do you think you will disclose the income you earn from buy-to-let / renovate and resale / property development / etc. to HMRC?

[wtmlive]

I don't know the answer, hence the post in this forum.
What would I tell HRMC if I sold my personal house and got a profit on it? Is selling your own house illegal as well?

[CR001]

If you sold your own house and make a profit you pay capital gains tax.

Buy to let works on a different principle as you get rental income, which is taxable after a limited amount of expenses. Property development is usually in the form of a company (limited, partnership, etc).

[wtmlive]

And what about renovating a house by myself and then selling it for a profit. A house that I don't live in personally. I don't intend to let it but it's my second dwelling. Can I not own a holiday home as well as my own house? Can I not pay CGT or other taxes on the profit on the sale of the 2nd house?

[CR001]

Yes, you pay CGT and need to declare the profit to HMRC. This is not a buy to let though but a residential or specific mortgage for the type of property.

[wtmlive]

Thanks for your reply.
The point I was coming towards is that it I am within my rights as Tier 2 visa holder to buy as many houses as I like and sell them for any profit that I deem fit.
And I can do all of this without ever registering myself as a company.
As far as I know, you don't have to be even a UK resident to buy property here.


Buy-to-let is a separate issue and I will seek legal advise before I commit to it.

[CR001]

No, you don't have to be in the UK but then again, most overseas buyers don't have visa conditions. I would have to look at the policy guidance to understand if there would be an implication or perhaps Sushdmehta has more information.