Property Investors

We're in it for the long haul

Whether it's one small Buy-to-Let flat or a large commercial property portfolio, property investment contains a great many opportunities to profit from sound commercial tax advice and an equal number of traps for the unwary.

Tax on property comes in many forms not just income tax on your profits, but Stamp Duty Land Tax on property purchases, Capital Gains Tax on property sales, VAT (potentially) on income and expenses, and IHT. Specific mitigation can be effective: but sometimes more can be saved by reviewing the whole picture and structuring your property affairs logically so that the tax charge falls in the right place at the right time. Simple can be effective!

Of course, tax is only part of the picture and we never forget that a short-term tax gain may be possible at the expense of a long-term advantage; sometimes a structure which is sub-optimal for tax (at least in the short term) can be more desirable where it helps mitigate long-term commercial risk from your holding. We will always take into account your overall situation and goals when planning your tax strategy.

Similarly, we take a cautious view of discloseable tax mitigation schemes. We see our role as assisting our clients to make decisions which are in their best interests over the long term, rather than to benefit from commission on the sale of tax 'products'. In reviewing any such scheme on your behalf we are careful to take into account, not just any short-term tax saving promised, but all other relevant factors such as:-

  • Robustness. Has HMRC signalled that the scheme is within what they accept is legitimate tax avoidance, or outside of it?
  • Costs. Does the scheme lock you into a long-term commitment (typically for fees to the scheme promoter) and do these outweigh the initial tax benefit?
  • Reversibility. Does the scheme create a cumbersome apparatus which cannot later be unwound if you circumstances change?

If you like to bet the house, we may not therefore be for you. But if you prefer a long-term, commonsense approach to your property business, you may be interested to talk to us about how we are helping our current property clients with:-

  • Ongoing bookkeeping, management accounts and payroll services
  • Personal tax advice for private landlords
  • Capital allowance claims
  • The use of Limited Companies to save tax or reduce risk
  • Partnerships, Joint ventures and other structures for property developments
  • Separating property investment and trading activities for tax optimisation purposes
  • Planning for Trading income versus Capital Gains
  • Capital Gains rollover and holdover considerations
  • Tax efficient mortgage structures
  • Second homes
  • Inheritance Tax
  • VAT planning, advice and registration

Next Step:

Please contact us if you need further advice.

Call us on 020 8773 4466 info@morgansca.co.uk

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