Whether you are a property developer or a property investor with a portfolio of residential or commercial lets, your business presents you with unique challenges.
One area that needs careful consideration and planning is always taxation. If you’re a developer, the level of tax you pay can determine how much profit you have available to plough into your next development project, or, if you are an investor, how much you have to reinvest.
Tax issues that you face include:
- Structuring – is your current structure as tax efficient as it could be? Should you use a limited company or would personal ownership or a partnership be more effective? Often a combination of these can give the best result.
- Changing structure – if your current set up does not give optimum tax efficiency how do you change to a different structure without giving rise to significant tax charges?
- Stamp Duty Land Tax (SDLT) – this is a very complicated tax and the liability can form a significant part of the purchase cost of new land or property. What planning can be undertaken prior to purchase to minimise any SDLT liability?
- Inheritance Tax (IHT) – property businesses bring with them the potential for significant liabilities (up to 40%) on death. Can you organise your business in such a way that any IHT liability is mitigated to the fullest extent?
Friend Partnership’s Tax Partner, David Gillies has been advising property developers and investors for many years. He is able to advise on all these issues and is one of the foremost Stamp Duty Land Tax specialists in the West Midlands.
David will be delighted to discuss your property business with you and explore areas where Friend Partnership can help. Contact David on 0121 633 2000 or email him here.