We provide tax advice to families, companies, trustees and entrepreneurs on property investment and development in the UK.
In recent years there have been numerous changes to the taxation of residential property. Important tax changes introduced in 2013 mean it is very important to consider the appropriate ownership structure for property in this category which is not rented out on a purely commercial basis.
The Annual Tax on Enveloped Dwellings levies an annual tax on certain properties where a company has an interest in its ownership. This tax can often apply to properties used by families privately which are owned by companies – careful consideration is needed of how privately used property should be owned.
From April 2015 Capital Gains Tax applies to all non-residents upon the disposal of UK residential property. Read more here.
We work with our property developer clients on a range of projects including single dwellings to large apartment blocks and commercial properties, providing specifically tailored advice to reflect the unique aspects of each project. All our clients have different needs and objectives, depending on whether it will be a single project for sale and exit, one of several projects with the proceeds to be reinvested or a joint venture.
In common with other trading businesses, property developers can utilise their lifetime allowance of £10m for entrepreneurs’ relief and secure a CGT rate of 10% if the qualifying conditions are met.
We provide tax advice to UK and international property investors, including the non-resident landlord scheme for taxation of rental profits at the basic rate of income tax.
Apart from the ongoing tax issues with rental profits a key issue can be the longer term plans for the assets and their status for inheritance tax. We work with our clients to develop long term strategies for succession planning which can include family partnerships and utilising share ownership to help transition assets to the next generation.
Overseas investors are often concerned about unnecessary exposure to UK inheritance tax and we can help with this too.
If you are considering purchasing property in the UK or you want to understand more about your exposure to UK tax on property you already own, then please contact us to speak with a member of our team.