Property tax

Property businesses

Property tax

More people are investing in property than ever before. Whether you have a second home in the countryside, a property abroad or a buy-to-let portfolio, the Hawsons tax team can help with your property taxes.

Our specialist property tax team can help with:

  • The preparation of property accounts
  • Calculating property tax
  • Advice on ownership structure
  • Capital Gains Tax planning
  • Appropriate reliefs and allowances

When it comes to property tax, there are lots of things you have to consider, including capital allowances, VAT and Stamp Duty Land Tax (SDLT). We can help you to effective manage your tax liabilities for your commercial property.

Stamp Duty Land Tax (SDLT)

SDLT is a significant issue for property developers, buy-to-let landlords and investors seeking to maximise profits and achieve costs inefficiencies on projects.

One of the welcome announcements in the 2014 Autumn Statement included the immediate reform of SDLT on the purchase of residential property. Until this announcement SDLT was charged at a single percentage of the price paid for the property, depending on the rate band within which the purchase price falls. This created a distortion as the tax due jumped at set thresholds and deterred potential purchasers. For example a house with a value of £255,000 attracted a charge of £7,650 as it was subject to the 3% rate yet if sold for £250,000 (or less) only a 1% charge applied reducing the cost to £2,500.

The system applicable to non-residential property was unchanged; however, the Chancellor announced in his 2016 Budget speech that, from 17 March 2016, the commercial SDLT calculations would be realigned with residential SDLT calculations, which were reformed last year.

Land Remediation Relief

One area that is often overlooked in a company’s tax computations is the ability to claim Land Remediation Relief (‘LRR’). This relief applies where a company acquires contaminated or derelict land or buildings for the purposes of a trade or property business and spends money on removing contamination.

Buy-to-let landlords

The buy-to-let market is thriving, but the government’s recent tax changes for landlords, announced in the Summer Budget and last week’s Autumn Statement, will significantly increase landlords’ tax bills and, in some cases, to a massive extent.

Capital allowances

Capital allowances are a valuable form of tax relief available to individuals and companies owning commercial properties. Whether you are constructing a new property, purchasing, or expanding an existing  property, you must seek to maximise your capital allowance claims. HMRC have made significant recent changes on capital allowances that could influence your decisions on buying business assets.

Should a client face an enquiry from HMRC into their tax return and accounts, a common area that is reviewed is any deduction that may have been claimed in the accounts for repairs and renewals. This arises because whilst a repair to an asset is an allowable item of expenditure for tax purposes, if the asset is altered, improved or replaced the expenditure is capital expenditure and is not allowable. Capital allowances may or may not be available on this capital expenditure.

Contact us for a free initial meeting

To find out more about how one of the leading firms of accountants in Sheffield, Doncaster and Northampton can help you, please contact one of our specialists. We believe in long-term client relationships and understand the importance of meeting to establish that you like us and we like you. This is why we offer all new clients a free initial meeting which will enable you to have a discussion about you and your business issues.

Free initial meeting

Stephen Charles

Tax Partner, Sheffield

0114 266 7141

Martin Wilmott

Partner, Doncaster

01302 367 262

David Cairns

Tax Partner, Northampton

01604 645 600