Accounting Issues
Profit Recognition and WIP
There is some flexiblity in the way property companies can recognise profits. We advise on the most appropriate policy for your business.
Budgeting and Cash Flow Mangement
High value, low volume sales present developers with huge scope for delayed sales and uncertain revenue streams. Add to this the need to fund ongoing projects and sub-contractors and the importance of cash flow
forecasting soon becomes apparent. We advise on all aspects of cash flow mangement.
Business Strategy
We can help with strategic issues property companies face, such as improving financial performance and succession planning.
International Transactions
International transactions involving property can become very complex. Through our membership of Praxity, we are able to help our international clients with cross-border transactions and tax planning.
Accounting Systems and Controls
Property companies have distinct accounting requirements, particularly regarding control of work in progress and comparison of costs against budget. We advise on suitable systems including software packages.
Key Staff Retention and Motivation
Holding on to and motivating key employees is especially important for property developers. Through share schemes and flexible benefits packages we can help you provide effective remuneration that is valued by
your staff.
Raising Finance
When raising finance for land and property transactions, it is important to consider not only the level of funding needed but also the type of funding. As well as finding suitable sources of finance, we can help prepare a business plan for securing funds.
Tax Issues
Tax Planning
Unlike many other business areas, property transactions are subject to a wide range of taxes and the types that apply will depend on the nature of the transaction and the parties involved. For this reason it is
essential to have access to a wide range of expertise on all the possible taxes that could be incurred. We have considerable experience in advising on the various taxes to ensure that you receive a
comprehensive tax planning service.
Corporation Tax
Since most land and property transactions are large, it is essential to ensure that tax is considered from the outset. This is borne out by the vastly different tax treatments afforded to investment and trading companies.
Tax planning issues arise throughout the lifecycle of property companies, from raising finance and the intricacies of the loan relationships provisions to reinvesting the proceeds of a property disposal using
rollover relief. If there is more than one company in the group then consideraton must also be given to any group reliefs that are available.
We can provide comprehensive tax planning support for all corporate property transactions and advise on arrangements for making a tax efficient exit when appropriate.
VAT
VAT and property transactions can be a significant issue. The multiple VAT rates for construction services, the VAT Capital Items Scheme and constantly changing legislation make for a very complex
environment. This, combined with the high value of property transactions, means that VAT is an area where you can potentially make great savings through proper planning.
Stamp Duty Land Tax
Stamp Duty Land Tax has a fundamental impact on all land transactions and as a self-assessment tax often requires specialist help.
No property transaction should be undertaken without considering the Stamp Duty Land Tax impact. We offer a full advisory service identifying the opportunities and pitfalls for the unwary.
Capital Gains Tax
With many people owning second properties, the value of securing principal private residence relief has now become an important tax planning tool. Add to this the differing taper relief treatments and options
for property disposal, then the need for upfront capital gains tax planning becomes apparent.
We can fully advise on your capital gains tax position and how to minimise any tax liability.
Income Tax
Individuals can face a daunting array of issues assessing what level of income from a property is subject to tax. The matter is further complicated by the type of lease and the treatment of any premiums
that are paid. There are also many tax reliefs available and knowing which costs are tax deductible is not always clear. We can advise you on these issues and make sure that you only pay the correct
amount of tax.
Inheritance Tax
The family home is usually the most valuable asset in an estate and increasing property prices have required more people to account for inheritance tax. Inheritance tax planning for the family home is restricted
by both the gifts with reservation legislation and the pre-owned asset legislation. However, there are various planning opportunities available and we can advise on suitable options for ensuring that more of
your family's wealth passes to the next generation, not to the tax man.
Capital Allowances
Capital allowances offer a tremendous opportunity for businesses to reduce their tax liabliities. They could add up to as much as 40% of a building's cost, yet few businesses claim their full entitlement. The
reason is that the rules for determining which fixtures qualify are complex, so to take full advantage of the allowances expert advice is needed. The size of the potential benefits makes that a huge untapped
opportunity for businesses of all types. We can separate and identify all qualifying fixtures and ensure that allowances for all relevant costs are claimed. This is particularly relevant when subcontractors are involved,
as qualifying expenditure can easily be hidden in their costs.
Construction Industry Scheme
This applies to contractors and subcontractors in the construction industry and covers almost any work done to a permanent or temporary construction. It requires specialist advice to ensure compliance
with the Inland Revenue regulations.
Overseas Landlords
People working overseas for a few years often rent their UK residence. However, the tax treatment of rental income can become complicated, especially when trying to manage your affairs from abroad. We
are able to ensure rental income is appropriately dealt with.
Offshore Tax Planning
An individual's tax status can give rise to various offshore tax planning opportunities. We can explore the possibilities of using offshore structures and, where relevant, make the necessary arrangments to
organise your property investments in this manner.
For further information, please contact one of the following;-
| Sheffield - | Peter Kennan, Partner | Tel. 0114 266 7141 |
| Paul Leary, Manager | Tel. 0114 266 7141 | |
| Doncaster - | Peter Kennan, Partner | Tel. 01302 367262 |
| Northampton - | David Cairns, Partner | Tel. 01604 645600 |
to download our Property Services literature in pdf format.