Calculate profit from buying, renovating, and selling property in the UK. Includes purchase costs, renovation budget, SDLT, CGT, and net return.
This depends on HMRC's view of your activity. If you regularly buy and sell properties with the intent of making a profit (trading activity), HMRC will treat the profit as income, taxable at up to 45% income tax plus NI. If it is a one-off or occasional disposal, CGT rates apply (18% or 24% for residential property in 2024/25). HMRC may challenge frequent flippers and reclassify gains as trading income.
Key costs include: Stamp Duty Land Tax (additional property surcharge of 3% applies if you already own a home), solicitor fees (£1,500–£3,000), survey costs, renovation and materials, bridging finance or mortgage costs during the hold period, council tax during renovation, estate agent fees on sale (1–3%), and CGT or income tax on the profit.
Yes — if you already own another property (including your main home), the 3% SDLT surcharge applies to every subsequent residential property purchase. On a £200,000 property, the surcharge adds approximately £6,000 in SDLT. This significantly impacts the viability of lower-margin flips and must be factored into the numbers before purchase.
Yes — all genuine renovation and improvement costs can be deducted from the disposal proceeds when calculating your capital gain (or trading income). This includes building materials, tradespeople's labour, planning fees, and architectural costs. Normal maintenance costs incurred before the property was available for sale can also be deducted.
Bridging loans provide fast, short-term finance for property purchases (typically 6–18 months), which is useful when buying at auction or needing to renovate before securing a conventional mortgage. However, bridging rates are high (0.5–1.5% per month, or 6–18% annualised), so holding periods must be short for a flip to remain profitable. Always model the full finance cost before proceeding.