Property Developers

Accountants in Bristol for Property Developers

Two modern houses with a third in the process of being constructed in the foreground

Being a property developer can be a rewarding endeavour, transforming neglected properties or vacant land into valuable assets. However, it is not just about bricks and mortar, it also involves navigating complex tax regulations, this often catches people out and can significantly impact their profits.

HMRC view property development as a business and treat it accordingly. Consequently, your profits may be subjected to Income Tax and National Insurance, which can consume up to 62% of your trading profits. To ensure maximum profitability, it is crucial to structure your property development project with tax considerations in mind.

Key tax considerations

As a property developer, you need to be aware of several key tax areas:

  • Stamp Duty Land Tax (SDLT): When purchasing land or property, SDLT is usually payable. This additional cost must be factored into your profit calculations.
  • VAT: Depending on the nature of your development, you may qualify for reduced or zero-rated VAT. Understanding the rules can result in significant savings.
  • Construction Industry Scheme (CIS): If you employ subcontractors, understanding CIS is essential. This scheme involves specific rules about deductions and income tax collection within the construction industry.
  • Holding Companies: Establishing a holding company can offer tax benefits, such as reducing SDLT liability and providing better asset protection.
  • Capital Allowances and Land Remediation Relief: These special tax reliefs are available for certain building costs and for cleaning up contaminated land. Claiming them correctly can significantly impact your bottom line.

How we help

At Elite Financial Accounting, our commitment is to ensure you pay no more tax than necessary. Our expert team excels in smart tax structuring, optimising Capital Allowances, maximising Land Remediation Relief and SDLT, and providing strategic advice on CIS and VAT.

Benefits of our service

  • Advice on ideal business structure
  • Affordable Fixed Fees with no hidden costs
  • On hand expert assistance
  • Time-Saving Solutions
  • Calculating all allowable deductibles to reduce your tax burden
  • Strategies to profit from your business and enhance tax efficiency
  • Handling all administrative tasks, including paperwork and bookkeeping
  • Acting as your point of contact with tax authorities
  • Ensuring accurate and timely submission of tax returns and documentation to HMRC

Get in Touch

Contact us today to see how our dedicated team can support you in navigating the financial complexities of property development, ensuring your projects are as profitable as possible.