Tax services

Property Tax Planning & Advice

End-to-end property tax planning across income tax, corporation tax, CGT, SDLT, VAT and IHT to minimise your property tax liabilities and maximise reliefs.

Comprehensive Property Tax Planning

Property ownership and investment in the UK involves multiple tax regimes, each with its own rules, reliefs, and planning opportunities. Our property tax planning service provides end-to-end tax advice across all property-related taxes, helping property investors, landlords, developers, and property businesses minimise their tax liabilities while ensuring full compliance with HMRC requirements.

Whether you're buying, selling, developing, or letting property, our property tax specialists can help you navigate the complex tax landscape, identify tax-saving opportunities, and structure your property arrangements to maximise reliefs and minimise liabilities.

Income Tax on Property

Rental income from UK property is subject to income tax, with different rules applying to individuals, partnerships, and companies. Our property tax planning includes:

Rental Income Optimisation: Strategic structuring of rental income to minimise income tax liabilities, including use of property companies, partnerships, and joint ownership arrangements
Property Allowances: Maximising use of property income allowances, including the £1,000 property allowance and rent-a-room relief
Expense Deductions: Ensuring all allowable expenses are claimed, including mortgage interest (subject to restrictions), repairs, maintenance, insurance, and professional fees
Furnished Holiday Lettings: Optimising furnished holiday letting status to access beneficial tax treatment, including capital allowances and CGT reliefs
Property Loss Relief: Utilising property losses effectively, including offset against other income and carry-forward provisions

Corporation Tax on Property

Property companies and property development businesses face corporation tax on their property profits. Our services include:

Property Company Structuring: Strategic advice on whether to hold property personally or through a company, considering income tax, corporation tax, and CGT implications
Property Development Tax: Optimising tax treatment of property development activities, including trading vs investment distinctions
Capital Allowances: Maximising capital allowances claims on property acquisitions and developments, including integral features and fixtures
Group Structures: Strategic use of group structures to optimise property tax positions across multiple companies

Capital Gains Tax (CGT) on Property

Capital gains tax applies to disposals of UK property, with different rates and reliefs available. Our CGT planning includes:

Principal Private Residence Relief: Maximising PPR relief on property disposals, including periods of absence and lettings relief
Annual Exemptions: Strategic timing of property disposals to utilise annual CGT exemptions effectively
Property Investment Reliefs: Utilising reliefs such as entrepreneurs' relief (now Business Asset Disposal Relief) where applicable
Deferred Disposals: Structuring property disposals to defer CGT liabilities, including use of companies and trusts
Non-Resident CGT: Compliance with non-resident capital gains tax rules for UK property disposals

Stamp Duty Land Tax (SDLT)

SDLT applies to purchases of UK property, with rates varying by property value and buyer circumstances. Our SDLT planning includes:

SDLT Reliefs: Identifying and claiming available SDLT reliefs, including first-time buyer relief, multiple dwellings relief, and mixed-use property relief
SDLT Mitigation: Structuring property purchases to minimise SDLT liabilities, including use of companies, partnerships, and other structures
SDLT Compliance: Ensuring accurate SDLT calculations and timely submissions to HMRC
SDLT Refunds: Claiming SDLT refunds where overpaid, including claims for multiple dwellings relief and other reliefs

VAT on Property

VAT applies to many property transactions, with complex rules around commercial and residential property. Our VAT property services include:

VAT on Property Sales: Determining VAT liability on property sales, including option to tax elections and exempt supplies
VAT on Property Development: Optimising VAT recovery on property development costs, including new build and conversion projects
VAT on Property Rentals: Managing VAT on commercial property rentals, including option to tax and exempt supplies
VAT Planning: Strategic VAT planning for property transactions to maximise VAT recovery and minimise VAT costs

Inheritance Tax (IHT) on Property

UK property forms part of your estate for inheritance tax purposes. Our IHT planning includes:

Property Gifting: Strategic gifting of property to reduce IHT liabilities, including use of annual exemptions and potentially exempt transfers
Property Trusts: Using trusts to hold property and reduce IHT exposure, including discretionary trusts and interest in possession trusts
Business Property Relief: Claiming business property relief on property used in a business, where applicable
Agricultural Property Relief: Utilising agricultural property relief on qualifying agricultural property
Residence Nil Rate Band: Maximising use of the residence nil rate band for property passing to direct descendants

Property Tax Planning Strategies

Buy-to-Let Property Tax Planning

For buy-to-let landlords, we provide comprehensive tax planning including:

Optimal ownership structure (personal vs company) considering income tax, corporation tax, and CGT
Mortgage interest restriction planning and alternative financing structures
Expense deduction optimisation and record-keeping requirements
Capital gains tax planning for property disposals
Inheritance tax planning for property portfolios

Property Development Tax Planning

For property developers, we provide tax planning including:

Trading vs investment treatment and tax optimisation
Capital allowances claims on development costs
VAT recovery on development and construction costs
SDLT planning for land acquisitions
Corporation tax planning for development profits

Property Investment Tax Planning

For property investors, we provide tax planning including:

Portfolio structuring to optimise tax positions
Capital gains tax planning for property disposals
Inheritance tax planning for property portfolios
Overseas property tax planning and compliance
Property company structuring and group planning

Why Choose Acumon for Property Tax Planning

Comprehensive Tax Expertise

Our property tax team has extensive experience across all property-related taxes, providing integrated advice that considers the interaction between different tax regimes.

Strategic Planning

We work with you to structure your property arrangements strategically, identifying tax-saving opportunities and ensuring optimal tax positions.

Proactive Compliance

We ensure all property tax returns and submissions are prepared accurately and submitted on time, reducing compliance risks and potential penalties.

HMRC Experience

Many of our tax professionals have previously worked for HMRC, providing unique insights into property tax legislation and effective strategies for working with HMRC.

Next Steps

Property tax planning can significantly reduce your tax liabilities and maximise reliefs. Contact our property tax specialists to discuss your property tax situation and discover how we can help you optimise your property tax position across all tax regimes.

Frequently Asked Questions

The optimal structure depends on your circumstances, including income levels, capital gains expectations, and inheritance tax planning objectives. We can assess your situation and recommend the most tax-efficient structure for your property holdings.

Allowable expenses include mortgage interest (subject to restrictions), repairs and maintenance, insurance, letting agent fees, legal and professional fees, and other costs wholly and exclusively incurred in generating rental income. We can help ensure you claim all allowable expenses.

Strategies include utilising annual exemptions, principal private residence relief, lettings relief, and timing disposals strategically. We can help structure property disposals to minimise CGT liabilities.

Available reliefs include first-time buyer relief, multiple dwellings relief, mixed-use property relief, and various other reliefs depending on your circumstances. We can identify and claim all available SDLT reliefs.

VAT rules for property are complex, with different rules for commercial and residential property, option to tax elections, and various exemptions. We can help navigate VAT on property transactions and optimise VAT recovery.

Next steps

Optimise your property tax position across income tax, corporation tax, CGT, SDLT, VAT and IHT. Our property tax specialists can assess your situation and develop a comprehensive tax planning strategy.