Property Investors

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Alliotts property specialists provide tax planning advice and services for property investors and developers, whatever route they take into a project, from buying off plan to leading a development from land purchase through to building and renovation. Key areas include structuring investments tax efficiently, Capital Gains Tax planning, high value residential property rules above £500,000, advice for UK and non UK resident landlords, Inheritance Tax planning for family property, and access to international advisors through Alliott Global Alliance.

Structuring your investment

Investors approach property in different ways. Some buy off plan, some lead a development themselves, taking on everything from the land purchase to the actual building and renovation work. Whichever route applies to you, the way your investment is structured can make a real difference to the tax you pay.

Considering Capital Gains Tax early on, can lead to a more favourable outcome. The same applies to understanding how repairs and renovation costs are treated for tax purposes, since this is an area where the rules are not always intuitive and getting it wrong can be costly.

High value residential property

If you are buying, or already own, a residential property worth more than £500,000, there are additional tax charges you need to know about. This applies with particular force where the property is held through a company, or a partnership that has a corporate partner among its members, since special rules apply in those cases. We can talk you through which exemptions might apply to reduce or avoid the higher charges, and help you think through how best to structure the investment from the outset.

Advice for landlords

We advise both UK resident and non UK resident landlords on tax matters, and where it helps, we will deal directly with the tax authorities on your behalf. The aim is simply to take some of the administrative weight off your shoulders so property ownership feels less like a second job.

Inheritance Tax and family property

If part of your reason for holding property is to pass something on to your family, it is worth thinking about Inheritance Tax. Our advisors can sit down with you, understand what you are trying to achieve, and put forward practical ways to plan for the future of the family’s property.

Sold a property? Don’t miss the 60-day CGT deadline

If you have sold or disposed of a UK residential property and Capital Gains Tax is due, you generally have just 60 days from completion to report the disposal to HMRC and pay the tax. We can calculate the gain, identify any available reliefs and allowances, and help you meet the reporting deadline.

Services for property investors and developers

Area	How we can help
Enveloped dwellings	Annual Tax on Enveloped Dwellings (ATED) advice and compliance
Tax planning	Personal tax, company tax and international tax
VAT	VAT advice and compliance
Capital Gains Tax	CGT planning, calculations and filing of returns, including advice on the 60-day reporting deadline for UK residential property disposals.
Accounts	Accounts and bookkeeping
Structure	Advice on the right company or partnership structure for your investment

Our team advises property investors and developers on:

• Annual Tax on Enveloped Dwellings (ATED)
• Taxation, covering personal, company and international matters
• VAT
• CGT planning, calculation and filing of returns
• Accounts and bookkeeping
• Company structure

International advice for property investors

Through our membership of Alliott Global Alliance, we can introduce you to advisors in a number of jurisdictions who understand tax efficient ways to invest in UK property from overseas. Likewise, if you are looking to invest in property abroad, we can introduce you to advisors with local knowledge.

Frequently asked questions

When should I start thinking about Capital Gains Tax on a development?

Ideally before you buy, or at the very latest before work starts. The way a development is structured, and how costs are categorised along the way, has a direct effect on the gain calculated when the property is eventually sold, so leaving this to the point of sale usually means missed opportunities.

Are repair costs and renovation costs treated the same for tax purposes?

No, and this is one of the more common areas of confusion. Repairs that restore a property to its previous condition are generally treated differently from improvements or renovation that go beyond that, which affects whether the cost can be deducted against income or only against a future gain.

Does buying off plan change my tax position compared to buying a finished property?

It can, particularly around the timing of when you are treated as having acquired the property and how any deposit or staged payments are dealt with. It is worth having this looked at before exchange rather than assuming it works the same as a standard purchase.

What triggers the extra tax charges on high value residential property?

Broadly, owning or buying a residential property worth more than £500,000, especially where it sits inside a company or a partnership with a corporate partner. Certain exemptions can apply, for example where the property is genuinely let out as a business, but these need to be actively claimed rather than assumed.

If I am developing land, do I need a different tax approach to someone buying a finished house?

Yes, in most cases. Land purchase and development brings in additional considerations such as VAT on construction costs and how profits from the eventual sale are taxed, which do not typically apply to someone simply buying a completed property to let.

Can you help me plan for passing property on to my children eventually?

Yes, this is a core part of our Inheritance Tax and estate planning work. The earlier this is considered, generally the more options are available, so it is worth raising even if a sale or transfer feels a long way off.

I am investing in UK property from overseas. Do the same rules apply to me?

Some rules apply in the same way, but there are additional considerations for non UK resident investors, including how rental income and any future disposal are taxed. Our non-resident landlord advice covers this in more detail.