Building with company profits

[Jakestephens]

I have have a small limited company involved in health that makes 60K a year before tax. In the past I have been working as a builder and having been to Ireland recently I thought that it would be a good idea to buy a plot of land through the company there and build a house to sell. It may be over a 3-4 year period.

My questions are - what tax implications will I have to take care off if I were building to sell? + will the build cost be the same as cost of goods sold and deducted from profits over the 3 years or only on the sale of the property?

Many thanks

J

 

[David Griffiths]

The build costs should be reflected in work in progress at the year end (similar treatment to stock) and will thus only be deducted on the eventual sale of the property