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Property Developers
Making the complex simple
Property development is considered a trade, which means that provided certain conditions are met, a property developer may be afforded a number of generous tax reliefs. However, the flip side of this is that they may also be subject to higher rates of tax on profits made from developing property than if they were investing in property. There are also important SDLT and VAT considerations.
It is common, for commercial purposes, for property developers to undertake each development via a separate special purpose vehicle (SPV), but there have been a number of changes to the taxation of UK property over recent years which need to be considered
Whilst this may still be the right approach, there are a variety of suitable structures available to developers and which one is right often depends on each developers’ specific facts and circumstances.
There are, of course, also commercial factors which need to be considered such as the ability to obtain funding, retaining control over the assets and personal risk and liability.
We are experienced in taking a holistic view towards tax advice for property developers, ensuring that:
• Profits are taxed correctly and tax efficiencies are maximised
• VAT and SDLT are correctly dealt with
• Tax reliefs are available on either the succession or sale of your business
• You are protected from commercial risk
• Your business can be passed to the next generation tax efficiently
Please do contact us to arrange a call.