Whether you own property for investment purposes or as part of a development project, having this in the right structure is crucial to optimising your tax planning.

When looking at holding rental properties on a long-term basis having these within a limited company structure may well prove to be beneficial due to the lower rates of corporation tax v personal tax rates.

If you are holding investment property for the short term then it may well be better to hold this personally so that use can be made of the capital gains tax allowances that are available to individuals but not to companies.

If you are considering a development project then it is always a good idea to have an exit strategy in mind before the project gets underway. This may be via liquidation or perhaps the disposal proceeds will be reinvested in further projects.  Either way, tax planning plays an important part to maximise your proceeds.

There are many taxes involved with property so your tax planning will likely involve many factors which could include:

• Capital Allowances: Our property tax planning services can help identify and maximise capital allowances on items like fixtures, furnishings, and equipment in commercial properties, reducing taxable income.
• Capital Gains Tax (CGT) Mitigation: Effective property tax planning can help structure property transactions in a way that minimises CGT liabilities, particularly for property investors and developers.
• Stamp Duty Land Tax (SDLT) Savings: Property Tax Planning can explore SDLT mitigation strategies to reduce the tax burden on property purchases.
• Inheritance Tax (IHT) Planning: Proper Property Tax Planning can help reduce the potential IHT liability on property assets by using exemptions, reliefs, or trusts.
• VAT Optimisation: Property transactions can involve VAT implications. Property Tax Planning services can help manage VAT efficiently, potentially reducing costs.
• Tax-Efficient Ownership Structures: Advisers can help determine the most tax-efficient ownership structures for properties, such as individual ownership, joint ownership, or company ownership.
• Expense Deductions: Property Tax Planning can identify deductible expenses related to property ownership and rental income, reducing taxable profits.
• Land Remediation Relief: For brownfield site development, property tax planning can help access Land Remediation Relief, which provides tax credits for cleaning up contaminated land.
• Enterprise Investment Scheme (EIS): Property tax planning can explore EIS opportunities for property investors, providing income tax relief and other tax advantages.
• Community Infrastructure Levy (CIL) Relief: Depending on the development, property tax planning can help access CIL relief, reducing infrastructure levies on certain projects.
• Annual Tax on Enveloped Dwellings (ATED) Relief: For high-value residential properties, property tax planning can identify ATED relief options, reducing annual tax liabilities.
• Leasehold Reform Relief: In some cases, property tax planning can help reduce tax liabilities related to leasehold reform, such as lease extensions.

It's important to note that the availability of these tax advantages may vary depending on the specific circumstances, property type, and current tax laws.

At Gritstone, our Property Tax Planning services can help property owners and investors navigate these complexities and optimise their tax positions while remaining compliant with tax regulations.