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Property flipping, refurbishment & trading investors
Buy. Renovate. Sell. Repeat.
Flipping houses, or ‘fix to flip’, is an exciting prospect for many investors because of the quick turnaround and greater profits that can be made.
When it comes to tax, it can be complex. You'll need to consider Stamp Duty, as well as tax on the value you add to the property. You'll no doubt want to keep your options open should you want to rent out your property, too.
You have a choice to manage your tax exposure. You can do it in your personal name if you’re planning a low number of flips per year. Or you can use the flexibility of a limited company to have complete reassurance and make the business more tax-efficient.
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Our services
Start your property trading business with Provestor
We have two plans that are a perfect match for property trading. Our Personal Advisor plan will take the strain for people who don’t need or want to go limited. Our Company Advisor plan is for limited companies.
Our tax-smart Advisor plans include:
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Day-to-day support from our expert team
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Checking and filing your accounts and tax return
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Four tax consultations a year so you can track your tax exposure
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Use of our award-winning app so you can always see the latest business figures.
A complete accountancy and tax advice service for personally owned portfolios
Comprehensive tax features, support and advice for advanced investors
Tax considerations when flipping property
Property flipping is a well-established investment strategy which involves purchasing a property and selling it for a profit. It’s also known as property trading, fix and flip, or buy to sell.
The majority of flipping involves some refurbishment, but this isn’t always the case; value can also be created by buying at a below-market price (perhaps at auction) or by resolving ongoing legal issues.
Property flipping is predominantly considered to be a trading activity, rather than an investment activity. This means that profits that you realise through flipping will be subject to either income tax or, more commonly, corporation tax for properties bought and sold via a limited company. The mindset and operating model of a property flipper is closer to that of a ‘conventional’ business, than that of a landlord.
Property flippers generally retain a portion of their sale profits to fund the purchase of their next property. Using a limited company for this has advantages, including flexibility and access to the business tax regime. In addition, depending on your long-term strategy, it may be beneficial to retain profits inside a limited company and claim tax relief on the retained profit when closing the company down.
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Tax advice
Unsure of how to start? Get tax-smart advice from Provestor today
Are you unsure if you should flip in your own name or via a limited company? Book a tax consultation with a Provestor expert to determine which option is best for you.
Our Pro will make sure you know how to stay tax-smart whatever your choice
Property flipping frequently asked questions
- Do I need a separate company for flipping if I already have a BTL one?
- Why do investors use limited companies?
- How long does it take to get the company set up?
- Can I make changes to my company once it’s set up?
- I’m about to secure my mortgage. Does it matter if I’ve not set my company up yet?
- Do you offer a one-off company set up?
- Can you be my registered office?
- Do I need a business bank account?
- If I become a director or shareholder of a limited company, would I lose my personal first time buyer perks?
Helpful resources for property investors
Unlock expert property tax knowledge with our free, in-depth Pro Guides, created by Provestor's specialist property tax accountants.
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Ready to start your property business? Join Provestor today.
Join thousands of successful property investors who've chosen Provestor.
Get started with Provestor today and get your property business set up for success.