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 the occasional "run-down" property to "do up".
Property development is treated as "a trade" by HMRC. Therefore, subsequent profits derived from the sale of a property could be subject to Income Tax and National Insurance rates on trading profits up to 62%, rather than Capital Gains tax (as with property investment).
Therefore, it is particularly important to structure your property development so it is as tax efficient as possible.
There are quite a few tax issues that could affect property development and these are all very complex. The particulars of Stamp Duty Land Tax (SDLT), VAT and the potential need for holding companies mean that property developers are often more likely to pay more than they need to.
At Elite Financial Accounting we will ensure that you aren’t paying any more tax than you should be. We optimise property tax outcomes through tax structuring and compliance, Capital Allowances, Land Remediation Relief and SDLT, Construction Industry Scheme (CIS) and VAT advice. We will help you plan your expenses, manage finances, maintain tax compliance and restructure sales to ensure you earn as much profit as possible. We are also able to help with the more administrative tasks such as secretarial tasks, bookkeeping and being your point of contact with the tax authorities. If you require property development accountants in Bristol then look no further than Elite Financial Accounting.
If you want to find out more about how we can help you then please do get in touch.