The Construction and Property industry is unique and has very specific accounting aspects that apply to it. An example challenge for construction companies is the thorny issue of the valuation of work in progress which can significantly affect the taxation position and trading position of the company.

Legislation is constantly changing in this industry with the UK Government introducing new rules such as the recent VAT domestic reverse charge or new procedures for submitting tax returns (Making Tax Digital) in addition to the existing requirements for processing payments in the Construction Industry Scheme. (CIS).

The Construction and Property sector has had to adapt like many businesses during the pandemic but we are proud to say we have helped a number of our clients in the following ways:

Steve Wood

GS Developments Limited

  • 1 Raising finance to purchase industrial units via SSAS pension fund.
  • 2 Putting in place a £1m finance facility for a ground working company having prepared detailed forecasts for a company that had never had to borrow money previously . This included detailed negotiations with the bank in order for this facility to be put in place.
  • 3 Obtaining an £80,000 tax refund for a client who were subject to an incorrect HMRC assessment.
  • 4 Helping one of our construction clients pay off their personal mortgage by good tax planning in order to extract funds from the business in order to do this.

The economic situation in this country is having a real impact on the ability to plan and carry out projects, so managing cash flow, careful financial planning and budgeting as well as efficient tax planning can result in reducing current and future tax liabilities.

If you are a developer or a buy to let landlord you can take advantage of:

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    Advice on properties incorporation for private BTL landlords with 10+ properties

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    Assistance with both residential and commercial property tax structure

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    Preparation of company and personal tax returns and capital gains tax for landlords

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    Business and cash flow planning services

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    Finance raising through our membership of Capitalise

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    IHT Planning for property owners and Investment companies

Case Studies

One of our clients had purchased over many years approx. 100 buy to let residential properties. We advised him to look at incorporation with the changes around mortgage interest relief but also because of future plans to pass down his wealth. We helped the client put a plan of action in place to incorporate the business so there was no SDLT and no Capital gains tax on the transaction.

He has achieved an initial saving of £86,000 Income tax , an annual income tax saving of £69,000 and sheltered capital gains of £2.3m by using this method. We are now also putting in place a plan of action to mitigate the future Inheritance Tax on the company value to pass down to his family.

One of our Property Developer clients had a significant value in the business and wanted to use Entrepreneurs Relief maybe before it is abolished. We therefore restructured the business using an HMRC approval process in order to achieve this to ensure they could use the 10% CGT rate now.

The team here can offer advice on structuring your business, cash flow forecasting improving cash flow, forward tax planning and the best business structure to improve your construction or property business ensuring all developers , landlords and contracting companies stay compliant with the mass of legislation.