Structuring a Property and Development Business?

by Readers Question

13:33 PM, 18th April 2017
About 2 years ago

Structuring a Property and Development Business?

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Structuring a Property and Development Business?

I am a newbie to Property & Development and seek advice on structuring a business plan. The process would be broad brush to [Source – Secure – Add Value] to property or land assets.

Thereafter the options are to [Develop, Sell or Hold] the asset.

In terms of taxation and liabilities can anyone give steering guidance (taken without prejudice) on how best to structure a company(ies) to cover the above processes. E.G. should I be setting up separate 4 different companies for [Source/ Secure] [Design & add value/ planning gain] [then Develop & sell] or [Hold to invest – rent out like a landlord] or another possible structure is 2 separate companies; [ Property Development Company – Source/ Secure/ Add Value/ Sell] and a second company to [Hold to invest – rent out like a landlord].

Presumably in the latter case the [Property Development company] `sells` the revalued asset to the [Holding company] ?

Possibly in terms of taxation it forces the process to be structured in a certain way ?

All thoughts and comments welcome.

Chris



Comments

Neil Patterson

13:37 PM, 18th April 2017
About 2 years ago

Hi Chris,

I have not heard of anyone splitting into 4 companies this way unless each area is large enough to be considered it’s own business cost centre.

This is largely because the cost of all the admin and accounting would be very heavy for a small startup unless you are going the full Trump route?

I would start by reading our full tax page and then contacting your accountant or employing our accountants Pacific if you do not already have any. >> https://www.property118.com/tax/

Specific tax advice is very complex and needs to take into account all your circumstances


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