Property Tax
Property is a tricky game; if you’re not careful, you could spend way more than you expected on things like stamp duty land tax, the ATED and VAT. A solid holding structure and an expert eye on the portfolio can help to mitigate some of those headaches.
Tax planning
Whether your properties are commercial or residential, or for trading or investment purposes, we will look at your individual circumstances and create a scenario that considers the most appropriate holding structure for the property. We’ll also look at how to minimise capital taxes through applying reliefs such as principal private residence relief, entrepreneurs’ relief, incorporation relief, and business property relief. We’ll monitor the impact on the residential property market as new changes take effect and develop tax planning strategies for you that may help to mitigate the tax burden.
Capital allowances
Capital allowances aren’t as cut-and-dried as you may think. For example, if you have purchased a second-hand commercial property, you may be able to claim capital allowances on existing fixtures within the property. Commercial property owners must be proactive in their capital allowance affairs; our experts can work with you to get the best deal.
Stamp Duty Land Tax (SDLT)
SDLT is due on the purchase of property. Different rates apply depending on whether:
- The property is commercial or residential
- It is your first or subsequent residential property investment
- The property is held either directly or indirectly through a company (see ATED).
There is often little that can be done to minimise SDLT on transfer of property, however there is a lot that needs to be considered to ensure the correct amount has been paid.
Annual Tax on Enveloped Dwellings (ATED)
If you hold a property through a company, collective investment scheme or partnership with corporate partners, and it is valued more than the ATED threshold, you may need to pay. We can advise on investing in or disposing of residential property, or assist with filing your ATED return.
VAT
The VAT risks associated with property transactions are high. We have a specialist team that can ensure:
- Any VAT consequences within the structure are minimised, considering the type of property, renovation plans and the option to tax.
- You obtain zero and reduced rates of VAT where applicable.
- That stamp duty implications for future disposal are considered within the scope of all decisions made relating to the property.
Fee protection insurance
Should your tax affairs come under HMRC scrutiny, and you have purchased our special tax investigation fee protection insurance, our fees will be completely covered no matter how lengthy or complicated the investigation process.
Get in touch for a chat about streamlining your property portfolio’s tax.
Chat to our team at the ICAEW careers event at Chartered Accountants' Hall in London. Visit our stand and hear from… 
