Property & Land Tax

Taxation of UK property has seen some wholesale reforms in recent years that has created confusion regarding many situations. As property specialists we are able to add clarity to these positions and ensure that the decisions you take are the right ones for your long term objectives.

Stamp Duty Land Tax (SDLT)

Stamp Duty Land Tax or SDLT is payable on most purchases of UK property or land.

It does apply to commercial property and mixed use land or property, though the thresholds differ.  

In addition, the purchaser has to consider if the 3% surcharge on additional residential properties is payable or if the 15% levy on certain property structures is due.

Annual Tax on Enveloped Dwellings (ATED)

This applies to high value UK residential property that is ‘enveloped’ in certain corporate structures and involves a charge to be paid annually.

The lack of consistency across the thresholds for these various taxes are adding an extra level of confusion.

There are exemptions however and we have been working with clients to ensure that they are claiming these reliefs. As well as ensuring compliance for all those this applies to.

Capital Allowances

In order for the purchaser of a commercial property to claim capital allowances on a site’s fixtures and fittings, the vendor must have already claimed allowances on those assets. 

This has led to commercial discussions about purchasers paying professionals to determine the claims which the vendor makes for pre-completion periods or reductions in purchase price to reflect the tax relief that the purchaser will not be able to claim as the vendor has not maximised their claims.

Land Remediation Relief

This can provide land owners relief for up to 150% of qualifying costs of “cleaning up” contaminated land – eg, spend £500,000 and get tax relief against a deemed spend of £750,000. It’s very appealing.

However there are several nuances to be aware of before you start such as ownership. They are only available to Limited Companies and depend on true ownership, rather on the basis of options. For a claim to be successful there needs to be a clear identification of costs. The use of barter transactions is making this more opaque and harder to quantify.

These can make the reliefs seemingly impossible to obtain in certain situations. Careful advance planning can ensure that the landowner can claim successfully.

Construction Industry Scheme (CIS)

We have advised businesses who wouldn’t normally consider their activity to fall under the definition of ‘construction’ and who may not realise their obligations under HMRC’s Construction Industry Scheme.

How we help those in Construction

We have a team who advise the construction sector and can help contractors and property professionals with CIS rules.

How we help Property Developers

We have a team who specialises on working with property developers  and can guide you through the legislation and reliefs that apply.

How we help Property Investors

We have a team who specialises on working with property investors  and can guide you through the legislation and reliefs that apply.

 
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