Property Accountants

The construction industry faces a range of unique challenges, including complex regulatory requirements, cash flow management, and navigating fluctuations in market demand.

At Price Bailey, we understand these pressures and provide targeted support, from managing CIS (Construction Industry Scheme) compliance to advising on VAT in construction projects. Our expert team is well-versed in capital allowances, land remediation relief, international tax planning and other tax incentives available to the industry. We can also help clients navigate the intricacies of subcontractor payments and contracts.

Housing associations face unique financial and regulatory challenges, including managing funding streams, adhering to strict regulatory requirements, and balancing social responsibilities with financial sustainability.

At Price Bailey, we offer specialised support to navigate these complexities and our team has extensive experience with issues such as VAT recovery, capital allowances, and financing options -helping housing associations remain compliant while maximising resources.

Landlords, whether residential, commercial, or non-residential face a variety of challenges, from tax planning to changing regulations. We can provide expert guidance on key issues such as Capital Gains Tax (CGT) and Stamp Duty Land Tax (SDLT).

For commercial property owners, we offer advice on VAT, lease agreements, and capital allowances. Residential landlords benefit from our expertise in mortgage interest relief and changing rental regulations. Our comprehensive approach ensures landlords of all types can navigate complex tax and legal requirements.

Property companies operate in a highly dynamic environment, facing challenges such as complex tax regulations, property transactions, and regulatory compliance.

We provide comprehensive support to property companies, offering advice on structuring deals, capital allowances, and VAT on property transactions. Our expertise includes navigating Corporation Tax, Stamp Duty Land Tax (SDLT), and Capital Gains Tax (CGT), ensuring your operations are both tax-efficient and compliant.

Whether you’re involved in property development, investment, or management, we can support you in mitigating risks, and ensuring long-term financial sustainability within this competitive sector.

The real estate sector faces a wide range of challenges, from navigating property acquisitions and sales to dealing with tax implications with an ever evolving landscape.

At Price Bailey, we offer expert support tailored to the needs of real estate businesses. Our services include advising on fund structuring, raising capital, tax on property income and property disposal and restructuring of property ownership.

The student accommodation sector presents unique challenges, from managing seasonal demand and occupancy rates to navigating complex tax rules and regulatory requirements.

At Price Bailey, we support you with business structure reviews, accurate and efficient annual accounts and advice and support through mergers and acquisitions.

Understanding the purpose and future plans will be key to help with the structure for purchasing a property. The general tax implications of doing so include a surcharge for stamp duty of 2% above the usual rates. There is also a 3% ‘additional property surcharge’ to consider, and it is possible for both surcharges to apply at the same time – potentially increasing each band of SDLT by 5%. You can read more about this in our ‘Stamp Duty Land Tax and the 3% ‘additional property’ surcharge explained’ article.

The Non-Resident Landlord scheme may also apply and impact the rents you receive. Read more about this in our ‘What all landlords need to know about the Non-Resident Landlord (NRL) scheme’.

This is completely dependent on your objectives. The most common options for structuring property portfolios include holding property as an individual, within a partnership, or as a Company.

The amount of SDLT you owe depends on the property’s value and its use (residential or non-residential). SDLT is calculated on a tiered basis, meaning you pay different rates for different portions of the property price.

SDLT Rates for Residential Properties (as of 2024)

• Up to £250,000: 0%
• £250,001 to £925,000: 5%
• £925,001 to £1.5 million: 10%
• Above £1.5 million: 12%

Example: Buying a house for £600,000

A worked example for the SDLT due on a residential property purchased for £600,000.

1. First £250,000: 0% SDLT = £0
2. Next £350,000 (i.e. £600,000 – £250,000): 5% SDLT on £350,000 = £17,500

So, the total SDLT payable on a £600,000 property would be £17,500.

If you’re buying a second home or a buy-to-let property, you’ll need to pay an additional 3% on each tier of SDLT.

Yes, if you’re purchasing a second home or a buy-to-let property in England or Northern Ireland, you will have to pay an additional surcharge on top of the standard Stamp Duty Land Tax (SDLT) rates. This surcharge is 3% on top of the usual SDLT rates for each price band of the property.

Example: Buying a second home for £400,000

The standard SDLT on a £400,000 residential property would be calculated as follows:

1. First £250,000: 0% SDLT = £0
2. Next £150,000 (i.e., £400,000 – £250,000): 5% SDLT = £7,500

Total SDLT = £7,500

Now, for a second home, a 3% surcharge is applied to each band:

1. First £250,000: 3% surcharge = £7,500
2. Next £150,000: 3% surcharge = £4,500

Surcharge = £7,500 + £4,500 = £12,000

So, the total SDLT for a second home priced at £400,000 would be £7,500 (standard SDLT) + £12,000 (surcharge) = £19,500.

When gifting a property, you should consider the potential tax implications, including Capital Gains Tax (CGT) if it’s not your main residence and Inheritance Tax (IHT) if you pass away within seven years. While Stamp Duty Land Tax (SDLT) usually doesn’t apply, it could if there’s an outstanding mortgage. You’ll also need legal advice to ensure the proper transfer of ownership and should be aware of how the gift could affect your eligibility for certain benefits.

You can read more about IHT considerations in our IHT FAQs.

Yes, there may be a VAT charge when purchasing a commercial property. Generally, commercial property transactions are exempt from VAT, but if the seller has opted to tax the property, VAT at the standard rate of 20% will apply to the purchase price. In some cases, you may be able to recover this VAT if you’re VAT-registered and the property is used for taxable business purposes. Additionally, Stamp Duty Land Tax (SDLT) is calculated on the VAT-inclusive price, which could increase the overall SDLT liability.

You can read more in our VAT on commercial property guide.