Tax impacts few industries as much as it impacts the property industry and property companies have to deal with tax issues which are very specific to them. Among the most significant issues is the interaction between trading activities and investment activities, which can impact inheritance tax, capital gains tax, income tax, corporation tax, VAT and stamp duty land tax. Falling on the wrong side of the line can result in a company or individual facing far larger tax liabilities than anticipated.
Our team has accumulated considerable experience over the last few years in advising property companies on all aspects of their business activities, including:
- Stamp duty land tax planning;
- Structuring development and investment activities so as to maximise the benefits of tax reliefs for trading businesses such as capital gains tax entrepreneurs’ relief and inheritance tax business property relief;
- Separation of the assets of a business, for example, by way of demerger;
- Structuring the acquisition of property businesses and tax due diligence thereon;
- Succession planning in family owned property businesses; and
- Planning for sales of properties.
In the past, property companies could often benefit from tax schemes designed to shelter income or gains from tax. However, our focus today is very much on bespoke tax planning, tailored to the individual circumstances of the business and its stakeholders. As with other aspects of the advice that we provide, our advice to property companies is based on an overwhelming desire to understand you and your business so that we can work with you, in partnership, as part of your team.