Real Estate Accounting
UK real estate professionals navigate a complex landscape of Stamp Duty Land Tax (SDLT), Capital Gains Tax (CGT) on disposals, the 3% additional SDLT surcharge on second properties, and Section 24 mortgage interest relief restrictions for individual landlords. Property developers must also consider VAT on commercial properties and the Construction Industry Scheme (CIS).
Our real estate accounting services cover portfolio-level financial management, rental income reporting, CGT planning on property disposals, SDLT optimisation, and Annual Tax on Enveloped Dwellings (ATED) compliance for properties held through companies. We help estate agents, developers, and investors structure their affairs tax-efficiently while maintaining full HMRC compliance.
What's Included
Comprehensive services tailored to your industry needs
Industry-Specific UK Expertise
Key UK Challenges
Complexities you face
- Navigating the 3% SDLT surcharge on additional residential properties and corporate purchases
- Managing Section 24 mortgage interest relief restrictions — now limited to a 20% basic rate tax credit
- Determining correct VAT treatment on commercial property transactions (option to tax decisions)
- Complying with Annual Tax on Enveloped Dwellings (ATED) for properties held in company structures
- Tracking capital improvements vs allowable repairs for CGT and income tax purposes
- Managing CIS obligations when engaging subcontractors for property development or renovation
Tax Considerations
HMRC rules & reliefs
- SDLT — residential rates up to 12%, plus 3% surcharge on second homes and 2% non-resident surcharge
- Capital Gains Tax — 18% or 24% on residential property gains, with 60-day reporting requirement
- ATED — annual charges from £4,150 to £269,450 depending on property value band
- Corporation Tax — 25% on property company profits, but access to full mortgage interest deduction
- VAT on commercial property — option to tax elections, transfer of going concern (TOGC) rules
- Inheritance Tax — Business Property Relief generally not available for property investment businesses
How We Help
Our tailored solutions
- Portfolio-level financial reporting with property-by-property profitability analysis
- SDLT planning including multiple dwellings relief and mixed-use property classifications
- CGT forecasting and 60-day disposal reporting to HMRC on your behalf
- Advising on incorporation of property portfolios — modelling tax savings vs SDLT costs
- ATED return preparation and associated reliefs (letting relief, development relief)
- Year-round tax planning to optimise rental profits, capital gains, and inheritance tax exposure
Ready to Simplify Your Real Estate Finances?
Get a free consultation with our industry specialists and discover how we can help your business thrive.
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