Incorporating a Property Business

OBJECTIVES

This webinar will provide a detailed technical overview of the tax implications of incorporating a UK property business. Delegates will gain the knowledge to determine when incorporation relief under s162 TCGA 1992 may be available, assess Stamp Duty Land Tax (SDLT) exposure, and evaluate whether corporate ownership is commercially and tax-efficient compared to personal ownership.

By the end of the session, attendees will be able to identify when a property portfolio constitutes a “business” for tax purposes, apply relevant case law, quantify key tax risks (CGT, SDLT, Corporation Tax and Income Tax), and confidently advise clients on the practical and procedural steps involved in incorporation.

KEY TOPICS

• What constitutes a property business? – distinguishing investment from trading and meeting the “business” threshold for incorporation relief
• Capital Gains Tax (CGT) on incorporation – s162 TCGA 1992 incorporation relief: conditions, restrictions and common pitfalls
• Relevant case law – analysis of leading incorporation relief decisions and HMRC guidance
• Stamp Duty Land Tax (SDLT) – market value rule, partnership rules (FA 2003 Sch 15), multiple dwellings relief (MDR), higher rates for additional dwellings and mixed-use considerations
• Corporation Tax vs Income Tax on property income and gains and extraction of profits from a company
• Anti-avoidance and HMRC risk areas

WHO SHOULD ATTEND

This session is aimed at partners, directors and managers in accountancy practices advising landlords and property investors who are considering incorporation of their portfolio. It is particularly relevant for tax practitioners who regularly advise on CGT and SDLT and require a deeper understanding of the technical and practical issues surrounding incorporation.

The webinar will also benefit senior accountants and tax advisers who are comfortable with property taxation but want to develop greater confidence in assessing whether incorporation is worthwhile and in managing the end-to-end incorporation process for clients.