Property Tax
Contact Our Property Tax Experts
Property Tax
Purchasing properties comes with a range of different tax implications, from initial purchase to ownership and through to selling the property there are tax consequences throughout. Whether you have a second home in the countryside, a property abroad or a buy-to-let portfolio, the Hawsons tax team can help with your property taxes.
Our specialist property tax team can help with:
- The preparation of property accounts
- Calculating property taxes
- Advice on ownership structure
- Capital Gains Tax planning
- Appropriate reliefs and allowances
- Preparation of self-assessment tax return
- Reporting of capital gains
- Inheritance tax planning
When it comes to property taxes, there are lots of things you have to consider, including capital allowances, VAT and Stamp Duty Land Tax (SDLT). We can help you to effectively manage your tax liabilities for your commercial property.
Stamp Duty Land Tax (SDLT)
SDLT is a tax levied on property purchases with increased rates for individuals with more than one property, companies purchasing property, and overseas individuals or companies purchasing UK property.
The application of SDLT is a notable cost for many property investors, developers or landlords seeking to maximise efficiency in the purchasing process. The exposure to SDLT can change due to each circumstance and so it is important that your purchase is considered by a professional to assess any potential reliefs throughout purchase and ownership.
Land Remediation Relief
One area that is often overlooked in a company’s tax computations is the ability to claim Land Remediation Relief (‘LRR’). This relief applies where a company acquires contaminated or derelict land or buildings for the purposes of a trade or property business and spends money on removing contamination.
LRR provides a considerable tax incentive for the removal or conversion or contaminated and derelict property and should not be overlooked. If you are unsure whether you meet the conditions for LRR, please contact our team to discuss the options available to you.
Buy-to-let Landlords
Managing buy-to-let properties can be an ever-changing landscape with a range of tax implications for each decision. Whether that be a purchase, a sale, a loan arrangement, or a lease granted – to name a few. The impact of these events will have direct impacts on the tax owed by you or your company and so we recommend a tax professional works with you to ensure that your decisions are not only tax compliant but also tax efficient.
Capital Allowances
Capital allowances are a valuable form of tax relief available to individuals and companies owning commercial properties. Whether you are constructing a new property, purchasing, or expanding an existing property, you must seek to maximise your capital allowance claims. HMRC have recently made significant changes on capital allowances that could influence your decisions on buying business assets.
Should a client face an enquiry from HMRC into their tax return and accounts, a common area of review is any deduction from profit that may have been claimed in the accounts for repairs and renewals. This arises because whilst a repair to an asset is an allowable item of expenditure for tax purposes, if the asset is altered, improved or replaced the expenditure is capital expenditure and is not allowable. Capital allowances may or may not be available on this capital expenditure, so it is vital you work closely with a tax advisor throughout the process.
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