There have been a significant number of changes to the taxation of UK property in recent years. These changes need to be factored into your business model and, where possible, it may be sensible to review your property investment platform to ensure that this remains appropriate and tax efficient.
Quite often, the default position for advisors instructed by property investors is to ‘incorporate’ i.e. to form a limited company and/or transfer existing holdings into a limited company. In a number of scenarios, this is an entirely sensible approach. But the act of incorporation does carry with it a number of tax implications which are not always properly spelled out to taxpayers. Equally, there are many other possibilities to structure your property investments in a tax efficient manner also.
Property is a class of asset, and is therefore subject to capital gains tax, income tax and inheritance tax. We can advise on the most appropriate structure to suit your needs and work with you to understand what that structure entails both in the short, medium and long term to ensure that you are fully aware of your obligations.
Particularly, we are engaged to advise taxpayers wishing to meet the following objectives:
- Reduction in income tax
- Mitigation of stamp duty land tax and capital gains tax on future acquisitions/disposals
- Ensure that the future generation is not lumbered with a large inheritance tax liability
- Effectively pass value of property investment assets to successors whilst maintaining control over those assets
