Property Developers
From an accounting and taxation perspective, property development can present a number of challenges that require careful planning in order to maximise your return on investment.
As specialist property accountants, Morris Crocker can guide you through the areas where particular consideration should be given, such as:
Ownership structure
There are several options available for developers. These include sole or joint ownership, partnership, LLP, Special Purpose Vehicle (SPV), company, or group. Deciding which one is most appropriate for you will depend on your individual circumstances and intentions for the property once the development is finished.
VAT on property transactions
VAT is a complex area and great care should be taken to ensure all parties to the property transaction fully understand the implications of how VAT can affect a property transaction. Although many property transactions are not usually subject to VAT there can be exceptions. Developments must meet HMRC's criteria in order qualify for zero rate VAT. Contact us to find out how VAT may affect your specific circumstances.
Capital allowances on property
Capital allowances are not generally available to property developers' properties as properties are classed as trading stock. Therefore, expenses incurred on improving or building the property are treated as revenue expenditure, not capital expenditure. However, in some situations capital allowances may be claimed, such as if the intention is to retain the property as an investment (buy to let).
Income tax and corporation tax for property developers
As a property developer, you will be liable to income tax and corporation tax depending on the ownership structure you have chosen. Our tax planning services take in to account both your personal and business tax position ensuring that you avoid any tax traps and have the best strategy in place for your individual circumstances.
For more information visit our property accountants page
If you are interested in becoming a client of Morris Crocker, contact us on 023 9248 4356. You can also use the request a quote form at the top of this page.