Property tax in the UK has undergone considerable change in recent years.
Tax avoidance remains under the spotlight, and burdens and risks associated with tax liabilities have increased for both property investors and property developers.
Property tax also provides a substantial income stream for the UK government. At current levels, property tax as a share of total taxation is higher in the UK than anywhere else in the developed world.
Which means for property owners in the UK, minimising the impact of increasingly unfavourable property levies through tax planning has become business-critical.
It is a hugely complex area, with factors determining your tax liability ranging from the type of property concerned to the structure used to hold your real estate assets or of any real estate transaction – acquisition, disposal or development.
Careful navigation is essential to maximise the opportunities for improving your tax treatment.
Here to help
ETC work with private individuals, companies, pension funds and private equity funds to deliver effective tax planning of their property assets while meeting HMRC compliance requirements.
We have extensive experience of advising both property investors and developers on all aspects of property tax and structuring, such as Stamp Duty Land Tax (SDLT), VAT and capital allowances.
This includes in-depth knowledge of the commercial and tax drivers affecting property ownership, and related exposure to Inheritance Tax (IHT) and Capital Gains Tax (CGT).
Our experience covers both residential and commercial properties in sectors ranging from leisure, tech, health and construction.
We have particular expertise in advising property investors and buy to let landlords on how to structure their portfolios and how they are affected by changes such as the phasing in of a reduction in income tax relief on finance costs, which commenced on 6 April 2017.
Our specialist property tax advisory services also encompass non-UK domiciled individuals and non-UK residents, who have arguably suffered even more over the years at the legislator’s hand than those based in the UK.
Our advice for UK and cross-border investors and developers of UK property ensures that ownership structures are tax-efficient and meet the commercial needs of your business.
We also offer specialist experience in large-scale overseas property developments, and have recently provided tax advice on creation an investment structure for a US hotel complex looking to raise capital and targeting UK resident investors.
We have also been involved in the process of setting up a Real Estate Investment Trust (REIT), which is to be listed on the Channel Islands Stock Exchange.