Property Tax is an area Sutton McGrath Hartley specialises in, we advise our clients on the various intricacies that the complex world of Property Tax involves. It is essential as either a commercial or residential property owner you get the right advice at the right time, to avoid the headache of paying more than you need to. Just some of the areas we can advise on are:
- Property Tax Planning
- Buy to Let
- VAT issues
- Capital Allowances (Please see our Group Company)
- Stamp Duty Land Tax (SDLT)
If you need any advice on Property Tax related issues, please get in touch with one of our experts today.
Recent changes in property taxation
For many years, the current government has promoted itself as the party that enables home ownership for all, but in recent years a combination of higher prices and much tighter lending criteria have made it more and more difficult for many people to get on the property ladder.
Spouses – income from jointly held property
Spouses often hold rental property jointly, and where this is the case, rental profits and losses are treated as arising to them in equal shares.
Company Trading Vehicle for Property Developers
Most developers trade through a limited company, primarily because company profits that remain undrawn can be reinvested in the next project having only suffered 20% tax, whereas the owners of an unincorporated business might pay up to 45% + NI, and therefore have less left over to re-invest.
Extracting development profits as capital and at lower rates of tax
A fairly common practice is to set up a new company for each development and then liquidate the company when the property is sold, in the hope that the distribution is eligible for Entrepreneur’s Relief and thereby benefits from a 10% tax rate, saving as much as 28.1% when compared to the rate payable on an income dividend distribution.