Property development

Development projects rarely follow a straightforward path. Rising construction costs, planning delays, changing market conditions and increasing borrowing costs can all affect project viability and place pressure on margins. At the same time, developers must meet the expectations of lenders, investors and HMRC, while maintaining sufficient cash flow to keep projects moving.

Having timely financial information and proactive advice enables developers to respond quickly to changing circumstances, identify potential issues early and make informed commercial decisions throughout the project.

Common challenges include:

• Managing rising build and contractor costs
• Maintaining project cash flow throughout the development
• Meeting lender and investor reporting requirements
• Managing tax obligations efficiently
• Planning how profits will be extracted once projects are complete

Selecting the right structure before acquiring land can significantly influence the success of a development. The most appropriate approach will depend on the size of the project, funding arrangements, investor requirements, risk profile and long-term business objectives.

Many developers choose to ring-fence individual developments within Special Purpose Vehicles (SPVs), while others operate through group structures, joint ventures or partnerships. The right structure can simplify funding, improve governance, isolate commercial risk and support future growth.

The decisions made before contracts are exchanged can have a lasting impact on the profitability of a development. Reviewing the proposed ownership structure, funding arrangements and tax position early helps developers avoid unnecessary costs and provides greater certainty before construction begins.

We advise on acquisition structuring, SDLT planning, VAT considerations, the Option to Tax, tax due diligence and funding structures, as well as the potential availability of reliefs such as Land Remediation Relief. We also help clients assess the implications of purchasing assets directly compared with acquiring a company that already owns the development site.

We can help

Planning a new development? Speak to our property development specialists before completing your acquisition.

Get in touch

Property development is subject to some of the most complex tax rules in the UK. Understanding how VAT, SDLT and the Construction Industry Scheme (CIS) apply throughout a project is essential to managing costs, maintaining compliance and avoiding unexpected liabilities.

Our specialists advise on the VAT treatment of residential and commercial developments, the implications of opting to tax, partial exemption, SDLT on land acquisitions and ongoing CIS obligations. We also help developers manage domestic reverse charge VAT, subcontractor payments and wider HMRC compliance requirements, ensuring tax considerations are addressed alongside commercial decisions rather than after the event.

Successful developments depend on accurate, timely financial information. Project-level reporting enables developers to monitor costs, track profitability and identify potential issues before they affect delivery or funding.

Our project accounting services provide clear visibility across every stage of a development, helping clients understand how individual projects are performing against budgets and forecasts. By providing meaningful financial information throughout the project lifecycle, we help developers make informed decisions, maintain control over costs and meet the expectations of lenders and investors.

Our support includes:

• Project-level accounting and reporting
• Work in progress (WIP) monitoring
• Cost-to-complete reporting
• Budget versus actual cost analysis
• Gross development value (GDV) tracking
• Margin and profitability reporting
• Loan drawdown reporting
• Cash flow forecasting
• Monthly management accounts
• Lender and investor reporting
• Financial performance reviews to support commercial decision-making

Securing appropriate funding is often one of the most important factors in delivering a successful development. Whether you’re raising finance for a new project or refinancing an existing scheme, lenders and investors increasingly expect detailed financial information and robust forecasts.

We support developers by preparing financial models, assessing project viability and producing the information required by banks, private investors and other funding providers. Our team also advises on development finance, senior debt, mezzanine funding, joint ventures and refinancing, helping clients present their projects with confidence and secure funding that supports long-term growth.

Different development models bring different commercial objectives, accounting treatments and tax implications. Understanding these differences is important when planning new projects and considering long-term investment strategies.

We advise developers delivering build-to-sell, build-to-rent, commercial and mixed-use schemes, as well as those retaining completed units as investment assets. Where properties are retained, we help clients understand the accounting and tax implications of moving from trading stock to investment property and ensure the ownership structure remains appropriate for long-term objectives.

We can help

Looking to retain completed properties as long-term investments? Visit our Property Investment page to learn more about our specialist support for property investors.

Get in touch

The end of a development project presents opportunities to maximise value, but also important tax and commercial decisions. Whether units are sold individually, a completed development is refinanced or an entire company is sold, careful planning can help improve outcomes and avoid unexpected tax liabilities.

Our advisers work with developers to review disposal strategies, assess the implications of asset sales versus share sales and plan efficient profit extraction. We also support clients considering refinancing completed schemes, retaining assets for investment or restructuring ownership to support future developments.

The most appropriate structure depends on the size of the project, funding arrangements, investor requirements and long-term objectives. Taking advice before acquiring land can help avoid costly restructuring later.

Developers should consider SDLT, VAT, acquisition structures, funding arrangements, available reliefs and the long-term tax implications of the proposed development before completing a purchase.

Many developers have obligations under the Construction Industry Scheme, particularly where subcontractors are engaged. Understanding your responsibilities early can help avoid compliance issues and penalties.

The VAT treatment depends on the type of development, the intended use of the property and whether commercial property is involved. Taking advice before work begins can help avoid unexpected costs.

Lenders and investors typically require regular management accounts, cash flow forecasts, project performance reporting and financial information demonstrating the viability and progress of developments.