Call 0117 254 1166 - Email email@example.com
Accountants in Bristol for Property Developers
A property developer predominantly acquires land or properties to carry out building work or renovation with a view of selling the developed properties for profit.
The term "property development" covers a wide range of activities, from major building companies to amateur property investors who acquire the occasional "run-down" property to "do up".
It is important to determine which type of property business you are; investor, developer or mixed status. Each as its own set of tax rules.
Property development is treated as "a trade" by HMRC. Therefore, subsequent profits derived from the sale of a property will be subject to Income Tax and National Insurance rates on trading profits up to 62%, rather than Capital Gains tax (as with property investment).
The tax on the profit on a property disposal could be over twice as much for a property developer than a property investor. This makes it extremely important to classify your business correctly and ensure you are following the correct tax rules (as set by HMRC).
Please contact us if you need further advice, have any questions about our services, would like a free consultation.