Property Tax

As an asset, real estate attracts a uniquely complex interaction of taxes.  Given its capital intensive nature, it invariably results in multiple stakeholders and with a wealth of structuring vehicles available ranging from partnerships, corporates, unit trusts all the way through to REITs and PAIFs, it can be daunting determining which structure will work best for you.

Led by Caroline Fleet, our team has significant experience in structuring tax efficient property holdings and transactions across the various property classes, incorporating different property players and can help find the right solution for you.

Examples of where we have previously advised include:

  • Purchase and development of large logistics park on behalf of an international investor.
  • Creation of ‘PropCo’/’OpCo’ holding structure to improve tax efficiency
  • Creation of a joint venture involving a US opportunity fund, REIT and UK developer to invest in mid-tier retail centres.
  • Incorporation of a significant property portfolio, held by UK individuals.
  • Restructuring the holding of care homes to improve tax efficiency
  • Review and analysis of VAT structures for wedding venues, conference rooms and day/night delegate rates and their VAT liability
  • Liaison with architects and contractors to mitigate standard rated supplies and obtain lower and zero rates of VAT on construction/refurbishment work to private and listed residencies while maintaining VAT recovery on expenditure

Matters on which we can assist include:

Structuring matters

Trading or Investment status

Resident or non-resident investment implications

Consideration of the most appropriate holding structure for the property, taking into account the tax status of the various stakeholders and their own tax position, looking at corporates, partnerships, collective investment schemes, unit trust, PAIFs and REITs.

Minimising any VAT leakage within the structure taking into account the asset class, registrations, renovations plans and options to tax

Obtaining zero and reduced rates of VAT where applicable

Minimising the tax and SDLT on transfer of property

Application of relief such as principal private residence relief, entrepreneur’s relief, incorporation relief, business property relief, property regeneration VAT relief.

Compliance matters

Registration, operation and compliance under the Non-resident landlord scheme

Registration, operation and compliance for VAT

Application of Construction Industry scheme

Availability of capital allowances

Transfer pricing considerations

For more information on our Property Tax services, please phone our TaxDesk on 0845 4900 509 or email taxdesk@gabelletax.com