This case involved a group of new potential landlords / developers that needed tax advice on setting up a tax efficient structure for their future ventures. This was a wise decision as we have come across landlords and developers who do not think about tax advice until they have acquired the properties or in worst cases, until they have sold the property. Our team of tax specialists were able to put together an acquisition structure that prevents the new rules on tax relief on interest restriction from applying. In addition, as for the acquisition, we were able to suggest some reliefs that allowed a substantial reduction on stamp duty land tax (SDLT). The tax planning advice involved a holding company and subsidiaries and special purpose vehicles (SPVs) that can be used for different types of development / buy to let projects.
This tax planning implemented in advance can save significant tax liabilities in the coming years allowing the clients to use the excess cash (as a result of the tax planning) to be used in further acquisition / development projects.