Tax incentives on property development
Developers who take advantage of the full array of tax incentives, such as capital allowances, often see a marked improvement in cash flow, improved margins and mitigation of financial risk. There is more case law relating to capital allowances than any other area of tax and without a complete understanding of the legal basis and construction rationale, significant value can too easily be lost.
How we help
Our team, with expertise in surveying, accountancy, tax and law, understand all the issues and opportunities relevant to a developer. We have developed a suite of services that are tailored to working on projects from the largest city centre regeneration to a small redevelopment of an existing building.
Considering tax relief opportunities early in the design and construction phase can add significant benefit, not only to cash flow during construction but also upon completion and beyond.
In all cases, our advice is straightforward, pragmatic and timely, especially in areas such as:
- Reviewing land purchases for potential remediation works and the availability of Land Remediation Relief for the clean-up of contaminated land, derelict sites and asbestos removal
- Assessing the tax efficiency of water and energy efficient system specification and considering the tax advantages of design choices
- Preparing valuation reports for inclusion in sales material for onward sale developments, and potentially significantly enhancing the final sale price
- Preparing supporting documentation to ensure enhanced capital allowances are maximised and presented in an acceptable format to HMRC
- Improving cash flow with yearly valuation reports to accelerate the tax savings and advice on opportunities to take advantage of tax credits
- Prepare fully disclosed and transparent valuation reports to ensure HMRC are satisfied with our approach, protecting our client’s reputation and mitigating against the risk of discovery assessments