Category: Articles

As a property investor, understanding tax rules is only the first step. The real value comes from turning that knowledge into practical action. Throughout this series, we’ve explored ownership structures, allowable expenses, SDLT planning, inheritance tax, company structures, and compliance obligations. This final guide provides a clear and prioritised property investor tax strategy for 2025, helping you protect profits, reduce tax liabilities, and prepare for future growth.

The Core Principle Every Property Investor Should Follow

Tax efficiency in property is not a one-time decision — it is a continuous process. Tax legislation changes. Your portfolio grows. Your income changes. Your family circumstances evolve. An annual review of your tax position is not optional; it is a professional obligation to your own financial future.

 

Property Investor Action 1: Review Your Ownership Structure

Ask yourself whether your current structure — personal, corporate, or LLP — still aligns with your investment strategy and income needs. Key triggers for a structure review:

• You own four or more properties personally and are a higher-rate taxpayer
• Your mortgage interest is significantly restricted under Section 24
• You are reinvesting profits rather than living off them
• You have family members who could benefit from share gifting
• You are planning to grow the portfolio significantly in the next 5 years

Personal vs company ownership — 2025 guide

 

Property Investor Action 2: Prepare for Making Tax Digital

If your property income exceeds £50,000, you must be fully MTD-compliant from 6 April 2026 — less than 12 months away. Steps to take immediately:

1. Select an HMRC-approved accounting platform (QuickBooks, Xero, FreeAgent, or a property-specific system)
2. Migrate from spreadsheets to the new platform and reconcile current-year figures
3. Set up bank feeds for automatic transaction capture
4. Confirm your bookkeeper or accountant is familiar with MTD quarterly submission requirements

Property records and Making Tax Digital

 

Property Investor Action 3: Audit Your Expense Claims

Most landlords underclaim expenses. A professional review of your last two years of tax returns commonly identifies missed claims for replacement domestic items, apportioned phone and broadband costs, travel to inspect properties, and professional fees. Each missed £1,000 of expense costs between £200 and £450 in unnecessary tax.

Allowable expenses for property investors

 

Property Investor Action 4: Start Inheritance Tax Planning Now

IHT planning has a minimum seven-year horizon. The best time to start was seven years ago; the second best time is today. Key steps:

5. Prepare an up-to-date inventory of all property assets with current market values
6. Calculate your total IHT exposure above available NRB and RNRB allowances
7. Identify which properties could be gifted (as shares if in a company) to begin the seven-year clock
8. Review whether a Family Investment Company or trust would benefit your specific circumstances
9. Ensure a current will is in place that correctly reflects all property ownership structures

Pass on property wealth without paying too much tax

 

Property Investor Action 5: Review SDLT Positions on Recent Purchases

If you have purchased property in the last 12 months, a professional SDLT review may identify overpayments — particularly where a mixed-use classification or Multiple Dwellings Relief could have applied but wasn’t claimed. HMRC allows amendments within 12 months of the filing date.

How to legally reduce stamp duty

 

Property Investor Tax Checklist for 2025–2026

Action	Priority	Timeline
Review ownership structure with a specialist accountant	High	Within 3 months
Select and migrate to MTD-compliant software	Critical (if income >£50k)	Before 6 April 2026
Audit last 2 years of expense claims	Medium-High	Before next tax return
Model IHT exposure and begin gifting plan	High	Within 6 months
Review SDLT positions on recent purchases	Medium	Within 12 months of each purchase
Assess FHL or SA qualification for short-term lets	Medium	At portfolio review
Check pension contribution headroom for corp tax efficiency	High	Before year-end
Ensure company board minutes and dividend documentation are current	High	Annually
Obtain advance HMRC clearance for any planned restructuring	Critical	Before any transaction
Felix Accountants: Your Property Tax Partner
From first-time landlords to multi-entity developers, Felix Accountants provides specialist property tax advice, structuring, MTD compliance, and HMRC representation. Whether you need a tax review, incorporation planning, or a complete group restructure — we are your trusted property tax partner.

 

Complete Article Series — Internal Links

1 — Ownership structure | 2 — Allowable expenses | 3 — Paying yourself | 4 — Incorporation relief | 5 — VAT and property

6 — SPV structures | 7 — Records and MTD | 8 — Reducing SDLT | 9 — Pension property investment | 10 — Advanced structures

11 — Inheritance tax | 12 — Portfolio demergers | 13 — SA and HMO tax | 14 — Furnished Holiday Lets

Frequently Asked Questions

How often should I review my property tax position?

At minimum annually — ideally before the end of each tax year (5 April) and immediately after any significant transaction such as a purchase, sale, refinance, or structural change to your portfolio. Tax legislation changes frequently; your accountant should flag relevant changes proactively.

 

What is the single most impactful tax action a UK landlord can take in 2025?

For higher-rate taxpayers owning properties personally with significant mortgage debt, reviewing whether to incorporate (transferring to a limited company) typically delivers the largest single improvement in after-tax income. The combination of lower corporation tax and full interest deduction can add thousands annually per property.

 

How do I know if I need specialist property tax advice vs a general accountant?

If you own more than two properties, operate any form of company structure, have significant mortgage debt, are planning to pass assets to family, or are considering serviced accommodation or development, you need a specialist. General accountants may miss reliefs that a property tax specialist would apply as standard.

 

What should I do first if I am worried about unpaid property tax?

Consider the Let Property Campaign — HMRC’s voluntary disclosure process that allows landlords to bring their tax affairs up to date with significantly reduced penalties. An unprompted disclosure through the LPC consistently results in lower penalties than an HMRC-initiated investigation. See felixaccountants.com/let-property-campaign/ for detailed guidance.

 

How can Felix Accountants help me with my property tax?

Felix Accountants provides a full spectrum of UK property tax services: ownership structure reviews, incorporation planning, SDLT mitigation, MTD compliance setup, IHT structuring, FHL qualification reviews, corporate group design, and Let Property Campaign disclosures. Book a free 30-minute consultation at calendly.com/fndeloh/30min to discuss your specific position.

 

 

Property success in 2025 and beyond depends on structure, compliance, and foresight. Book your comprehensive property tax review with Felix Accountants today. Book Your Comprehensive Property Tax Review

 

 

 

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Serviced accommodation and HMOs have transformed from niche strategies into mainstream property businesses — but their tax treatment is substantially different from standard buy-to-let, and HMRC is paying increasing attention to operators who blur the boundaries. This guide explains exactly how each model is taxed and what you must do to remain compliant.

Serviced Accommodation vs HMO Tax Treatment

Model	HMRC Classification	Tax Treatment	Key Implication
Serviced accommodation (short-term)	Trading activity (like a hotel/hospitality business)	Trading income — income tax or corporation tax	Full mortgage interest deduction; NIC applies; capital allowances available
HMOs (long-term tenants)	Property investment (unless hotel-like services provided)	Rental income — income tax or corporation tax	Section 24 restriction applies to individuals; no capital allowances on furniture except RDI Relief
FHL (see Chapter 14)	Trading business if HMRC conditions met	Trading income with special FHL reliefs	Full interest, capital allowances, BADR on sale

 

Serviced Accommodation Tax Rules

Serviced accommodation income is generally classed as trading income. This delivers several significant advantages over standard residential letting:

• Full mortgage interest deduction — Section 24 restriction does not apply to trading activity
• Capital allowances on furniture, fixtures, equipment, and technology installations
• Potential Business Asset Disposal Relief at 10% CGT rate on sale where FHL conditions are also met
• Pension contributions can be made based on net trading profits

However, trading classification also means: Class 2 and Class 4 National Insurance contributions may apply to individual operators; and local authority business rates replace council tax for most SA properties.

Tax Treatment: HMOs

HMOs are typically treated as standard residential property investment. Individual HMO landlords face the Section 24 mortgage interest restriction (20% tax credit only). Through a limited company, interest remains fully deductible and corporation tax rates of 19–25% apply.

HMO Through a Company — Often More Efficient

For HMO landlords with significant mortgage borrowing, the limited company route can substantially improve net returns. Corporation tax at 19–25% versus income tax at 40–45%, combined with full interest deduction, frequently delivers an extra £3,000–£8,000+ in annual net profit per property for higher-rate taxpayers.

 

VAT on Serviced Accommodation and HMOs

Letting Type	VAT Treatment	Registration Required?
Standard residential letting	Exempt — no VAT charged	No (residential rental doesn’t count toward threshold)
HMO — long-term tenants	Exempt — no VAT charged	Only if other taxable income exceeds £90,000
Serviced accommodation (short-term)	Standard-rated at 20% once above VAT threshold	Yes — mandatory once turnover exceeds £90,000 (2025)
FHL	Standard-rated — treated as short-term commercial accommodation	Yes — once turnover exceeds £90,000

 

Allowable Expenses for SA and HMO

• Cleaning, laundry, and consumable supplies (toiletries, linen, kitchen essentials)
• Utilities (gas, electricity, water, broadband) — where paid by the landlord
• Letting agent and management fees; booking platform charges (Airbnb, Booking.com)
• Buildings and liability insurance; rent guarantee insurance
• Repairs and maintenance (not capital improvements)
• Capital allowances on furniture, TVs, appliances, CCTV (SA and FHL operators only)

 

HMO Licensing and Regulatory Compliance

HMOs with 5 or more occupants in 3 or more storeys require mandatory licensing from the local authority. Many councils have introduced additional licensing requirements for smaller HMOs. Failure to licence is a criminal offence and can result in a Rent Repayment Order requiring the landlord to refund up to 12 months of rent.

Related Reading

Furnished Holiday Lets — tax benefits and compliance | VAT and property — when does it apply? | Property records and Making Tax Digital

Frequently Asked Questions

Is Airbnb income taxed as a trade or rental income?

If you let a property short-term on Airbnb with cleaning, linen changes, and guest services, HMRC typically treats this as trading income. If you simply let the property without services and guests manage themselves, the distinction is less clear. The FHL tests (if applicable) provide the clearest framework — if those are not met, the income may be taxed as property investment income.

 

Do I need to register for VAT for my serviced accommodation?

Yes, once your gross turnover from short-term letting (including all SA and FHL income) exceeds £90,000 per year (2025/26 threshold), you must register for VAT and charge 20% on income. You can then reclaim VAT on all business expenses including cleaning, utilities, and refurbishments.

 

Can I claim capital allowances on my HMO furniture?

Not on standard buy-to-let HMO furniture. The Replacement of Domestic Items Relief allows a deduction only when you replace an existing item like-for-like — there are no capital allowances on initial furnishing costs. Serviced accommodation and FHL operators can claim capital allowances on all eligible fixtures and equipment.

 

What is a Rent Repayment Order and when can tenants apply for one?

A Rent Repayment Order (RRO) allows tenants to reclaim up to 12 months of rent from a landlord who has committed a housing offence — including operating an unlicensed HMO or failing to comply with an improvement notice. The First-Tier Tribunal can order repayment even where the landlord is later prosecuted.

 

Should I hold my HMO portfolio in a company or personally?

For higher-rate taxpayers with significant mortgage borrowing, a limited company typically provides substantially better returns: full interest deduction, 19–25% corporation tax versus 40–45% income tax, and greater extraction flexibility. The decision depends on current leverage, income needs, and long-term portfolio plans.

 

 

Don’t manage your serviced accommodation or HMO tax position without professional support. Book a consultation with Felix Accountants today. Speak to an SA/HMO Tax Specialist

 

 

 

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A property portfolio demerger allows property investors, business partners and family members to split shared property holdings in a tax-efficient way. As property partnerships evolve, partners often reach a point where their strategic objectives diverge. One wants to continue growing a rental portfolio; another wants to focus on development. Others simply wish to go their separate ways. Splitting a shared portfolio — a demerger — can be done without triggering immediate CGT or SDLT, but only if the structure is correct.

What Is a Property Portfolio Demerger?

A demerger is a corporate or partnership reorganisation that separates part of a business or group into independent entities. In property terms, it typically involves dividing ownership so each party retains a proportionate share or a defined subset of the portfolio.

Why Investors Use a Property Portfolio Demerger

• Strategic differences: different investment horizons or risk appetites between partners
• Succession planning: parents allocating specific properties to individual children
• Refinancing flexibility: lenders preferring separate security entities per investor
• Dispute resolution: separating interests fairly on relationship breakdown
• Liability segregation: ring-fencing high-risk development projects from stable rental assets

 

Property Portfolio Demerger Through a Partnership Split

For portfolios held in a genuine partnership, separation involves transferring specific properties to each partner’s new company or sole-ownership structure. Where incorporation relief and SDLT partnership relief apply (as discussed in Chapter 4), these transfers can be structured with minimal or zero immediate tax.

Partnership Evidence Is Mandatory

HMRC will demand proof that a genuine partnership existed before the split: SA800 partnership returns, a joint bank account, shared expense records, and a signed partnership agreement. Without these, SDLT relief cannot be claimed and full SDLT will be payable on the transferred properties.

 

 Property Portfolio Demerger Through a Corporate Restructure

Where properties are held within a limited company, three main demerger mechanisms apply:

Mechanism	How It Works	Key Tax Issue
Statutory demerger	Assets transferred to new companies under Companies Act 2006	Must meet specific conditions; inappropriate where IHT or tax avoidance motive is present
Liquidation demerger	Original company liquidated; assets distributed to shareholders who place them into new companies	Capital treatment possible; SDLT risk on transfer to new vehicles
Share exchange / reconstruction	Shareholders exchange shares in parent for shares in new companies, each holding different properties	CGT deferred under s.135 or s.139 TCGA 1992; SDLT reconstruction relief may apply

 

Key Tax Reliefs for a Property Portfolio Demerger

Tax	Relief Available	Condition
CGT	Section 139 TCGA 1992 reconstruction relief — gain deferred	Shareholders retain proportionate interests; no avoidance motive
Corporation Tax	Tax-neutral intra-group transfers	Entities must be within the 75% group before and after demerger
SDLT	Group relief (Schedule 7 FA 2003) or reconstruction relief	Group relationship must continue for at least 3 years after transfer
HMRC Clearance Is Highly Recommended
Before executing any demerger, obtain advance clearance from HMRC under s.138 TCGA 1992 and s.701 ITA 2007 confirming the reorganisation is not motivated by tax avoidance. Without clearance, HMRC retains the right to challenge the treatment on audit — potentially years after the transaction is complete.

 

A Worked Example: Corporate Demerger of 6 Properties

Partners A and B jointly own a company holding six rental properties worth £3 million total. They wish to split equally. A reconstruction demerger is structured: a new subsidiary is created and three properties transferred to it at book value. A receives shares in the new subsidiary; B retains shares in the original company. Result: no immediate CGT or SDLT, both companies remain under common control until independence.

Related Reading

Transfer property into a company without paying tax | How to reduce stamp duty legally | Pass on property wealth without paying too much tax

Frequently Asked Questions

Can we split a property company without paying CGT?

Potentially, yes. Under s.139 TCGA 1992 reconstruction relief, a demerger structured so that shareholders retain proportionate interests in the separated entities can be treated as tax-neutral for CGT. The structure must not be motivated by tax avoidance, and advance HMRC clearance is strongly recommended.

 

Do we pay SDLT when splitting properties between companies in the same group?

Group relief (Schedule 7 FA 2003) eliminates SDLT on transfers between companies within the same 75% corporate group, provided the group relationship is maintained for at least three years after the transfer. A clawback applies if the group relationship breaks down within that period.

 

What happens to mortgage consents on a demerger?

Existing lenders must consent to any change in the property-owning entity. This is a practical constraint that must be addressed before the demerger structure is finalised. In some cases, refinancing is required, which can create additional cost and delay.

 

Can we demerge without dissolving the original company?

Yes. In a share-exchange reconstruction, the original company survives — shareholders simply swap some shares for shares in a newly created company. In a liquidation demerger, the original company is wound up, but properties transfer to the shareholders’ new vehicles before dissolution.

 

How long does a property demerger take?

A well-prepared demerger typically takes 3–6 months from initial planning to completion. This includes obtaining valuations, drafting legal documents, applying for HMRC clearance (which can take 4–6 weeks), executing the transfers, and registering new ownership at HM Land Registry.

 

 

A poorly executed portfolio split can trigger six-figure tax bills. Book a consultation with Felix Accountants before any restructuring begins. Get Your Demerger Advice Today

 

 

 

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Property inheritance tax planning is an essential consideration for UK property investors who want to pass wealth to the next generation efficiently. Understanding the available reliefs, gifting rules, trusts and Business Property Relief opportunities can significantly reduce future inheritance tax liabilities. Building a property portfolio takes decades of disciplined investment. Passing it on efficiently requires equally disciplined planning. Inheritance Tax (IHT) at 40% threatens to erode a significant proportion of property wealth at the point of death — but with the right structures in place, the impact can be substantially reduced.

 Property Inheritance Tax Thresholds for 2025/26

Allowance	Amount (per person)	Condition
Nil-Rate Band (NRB)	£325,000	Applies to all individuals; unchanged since 2009
Residence Nil-Rate Band (RNRB)	£175,000	Main home passing to direct descendants (children/grandchildren)
Combined NRB + RNRB per person	£500,000	Where both apply
Combined for married couple	Up to £1,000,000	Transferable allowances on second death
IHT rate above allowances	40%	(36% if 10%+ of estate left to charity)
RNRB taper	Reduces by £1 per £2 of excess	Estates worth over £2 million lose RNRB gradually

 

Strategy 1: Property Inheritance Tax Strategy: Lifetime Gifting and the Seven-Year Rule

Gifts made during your lifetime are treated as Potentially Exempt Transfers (PETs). If you survive seven years after making the gift, the value falls completely outside your estate for IHT purposes. Between years 3 and 7, taper relief reduces the effective IHT rate on the gift.

Years Since Gift	IHT Taper Relief	Effective IHT Rate
Under 3 years	0%	40% of value
3 to 4 years	20%	32% of value
4 to 5 years	40%	24% of value
5 to 6 years	60%	16% of value
6 to 7 years	80%	8% of value
Over 7 years	100% exempt	0%

gov.uk/inheritance-tax/gifts

 

Strategy 2: Property Inheritance Tax Strategy: Gifting Company Shares

Transferring individual properties triggers SDLT and CGT. Transferring shares in a company holding the properties does not trigger SDLT. By holding properties within a company and then gifting shares progressively to children, you can reduce IHT exposure over time without triggering property-level taxes on each transfer.

Strategy 3: Property Inheritance Tax Relief Through Business Property Relief (BPR)

BPR can exempt up to 100% of qualifying business assets from IHT. For property investors, BPR applies to active property trading or development businesses — not passive buy-to-let portfolios. HMRC scrutinises BPR claims carefully and has challenged passive landlords asserting BPR on long-term investment portfolios.

Activity	BPR Eligibility	Key Requirement
Long-term residential rental	Very unlikely	HMRC treats as passive investment, not a trading business
Furnished Holiday Lets	Possible — if genuinely commercial	Must demonstrate substantial management activity akin to a hotel business
Active property development	Likely — if genuine trading activity	Clear development intent, trading records, and staff/subcontractors
Serviced accommodation business	Possible — requires evidence of hotel-like operations	Regular guest services, active management, and commerciality

 

Strategy 4: Property Inheritance Tax Planning with Trusts

Relevant property trusts allow you to transfer assets while retaining some control over their eventual distribution. The initial transfer is a Chargeable Lifetime Transfer (CLT) — subject to an immediate 20% IHT charge on the excess above the NRB. Periodic charges of up to 6% apply every 10 years. Despite this, trusts offer strong asset-protection and succession benefits for larger estates.

Strategy 5: Property Inheritance Tax Protection with Life Insurance Trusts

A life insurance policy written in trust falls outside the estate and pays out directly to beneficiaries to meet the IHT liability — without requiring a property sale. The cost of premiums is predictable, and the benefit on death is immediate and tax-free to the recipient.

Related Reading

Advanced company structures — FICs and holding companies | Transfer property into a company without paying tax | Property portfolio demergers — splitting your holdings

Frequently Asked Questions

Is rental property subject to inheritance tax?

Yes. Investment property is included in your estate at market value on death. There is no automatic relief for investment property — only your nil-rate band (£325,000) and residence nil-rate band (£175,000 where applicable) reduce the chargeable estate.

 

Can I gift my buy-to-let properties to my children?

Yes, but the gift is treated as a disposal at market value — triggering CGT on any gain. The property also does not avoid IHT unless you survive seven years after the gift. Gifting company shares (where property is held corporately) is often more efficient.

 

What is the Residence Nil-Rate Band and do I qualify?

The RNRB (£175,000 per person, £350,000 for a couple) is an additional IHT-free allowance for estates where the main home passes to direct descendants (children, step-children, grandchildren). It tapers for estates above £2 million and is lost entirely if you do not have a qualifying residential interest.

 

Do landlords qualify for Business Property Relief?

Not typically for standard buy-to-let portfolios. HMRC treats passive rental income as investment rather than trading activity. FHLs and development businesses have a stronger (though not guaranteed) case. Professional review and contemporaneous evidence of commercial activity is essential before relying on BPR.

 

How can I plan for IHT without giving up control of my properties?

A Family Investment Company (FIC) allows parents to retain voting control (and therefore property decisions) while gifting growth shares to children. Alternatively, a trust allows you to transfer legal ownership of assets while trustees (potentially including yourself) manage distribution. Both require specialist drafting.

 

 

Don’t leave inheritance tax to chance. Book a confidential IHT review with Felix Accountants today — the earlier you plan, the more you preserve. Book Your IHT Planning Session

 

 

 

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Advanced property company structures help UK property entrepreneurs reduce tax, protect assets, improve succession planning and scale portfolios more efficiently. As property businesses grow, simple limited company structures often become restrictive. Advanced property company structures such as holding companies, Family Investment Companies (FICs), LLPs and joint-venture SPVs provide greater flexibility, stronger risk protection and improved long-term tax efficiency. This guide explains the most effective structures available to UK property investors in 2025.

Why Advanced Property Company Structures Matter

• All assets in one company = all risk in one entity
• Multiple income streams become impossible to analyse individually
• A lender’s security covers the entire company, not just the specific project
• Succession is all-or-nothing — no gradual transfer to family
• Tax planning for extraction becomes a blunt instrument

 

Model 1: Advanced Property Company Structures: Holding Companies

A holding company (Holdco) owns the shares of multiple subsidiary companies — each focused on a distinct activity: development SPV, investment subsidiary for long-term rentals, and a management company charging fees across the group. Benefits include:

• Dividends flow between UK group companies free of corporation tax (UK’s participation exemption)
• Losses in one subsidiary can be surrendered to profitable ones via group relief
• Capital transfers between group companies are tax-neutral if within a 75% group
• Intra-group VAT disregard where a VAT group election is in place
• Insolvency of one subsidiary does not affect others

 

Model 2: Advanced Property Company Structures: Family Investment Companies (FICs)

An FIC is a bespoke limited company used to transfer property wealth between generations while retaining parental control. The typical structure: parents hold voting-only (ordinary A) shares; children hold non-voting growth shares that capture future capital appreciation.

FIC Feature	How It Works	Tax Benefit
Voting control	Parents retain ordinary voting shares	Decision-making control preserved indefinitely
Growth shares for children	Non-voting shares allocated to children/trusts	Future growth passes to next generation free of IHT after 7 years if gifted as PETs
Corporate tax rate	Profits taxed at 19–25% CT rate	Lower than personal 40–45% income tax on same profits
Flexible dividends	Distributed to family members at different tax rates	Utilise lower-rate bands across the family
Shares vs property	Transfer shares rather than properties	No SDLT; CGT on shares can be annual-allowance managed
FIC Drafting Is Critical
The Articles of Association and shareholder agreement must precisely define voting rights, dividend rights, transfer restrictions, and what happens on death or relationship breakdown. A poorly drafted FIC can inadvertently trigger the settlement rules, defeating the tax planning purpose. Always use an experienced solicitor and tax adviser in tandem.

 

Model 3: Advanced Property Company Structures Using LLPs

LLPs remain relevant in advanced structures where: flexible annual profit allocation is needed; partners contribute different resources; or the structure is designed as a precursor to incorporation, with SDLT partnership relief available on the subsequent company transfer.

Model 4: Advanced Property Company Structures for Joint Ventures

Large developments often require collaboration between landowners, capital investors, and development managers. Three main structures are used:

• Contractual JV — parties collaborate under a single agreement without a separate entity; simpler but less lender-friendly
• Equity JV via a limited company SPV — each party holds shares proportionate to capital input; clean for lender security
• LLP JV — flexible profit allocation in variable ratios; transparent taxation for partners

 

A Hybrid Group Model: How It Fits Together

Entity	Role	Key Tax Purpose
Holding company	Owns all subsidiaries; receives tax-free inter-company dividends	Central control; estate planning anchor
Development SPV (×N)	Each holds one development project	Ring-fenced risk and CT liability per project
Investment subsidiary	Holds long-term rental properties	Separate accounting; group relief available
Management company	Charges fees to group for services	Deductible costs; income splitting where legitimate
Family Investment Company	Holds residential or stable commercial assets	Intergenerational wealth transfer at CT rates

Related Reading

Should you buy property in a company or personally? | Pass on property wealth without paying too much tax | Property portfolio demergers — splitting your holdings

Frequently Asked Questions

What is a Family Investment Company and is it still valid after the 2024 Budget?

A FIC remains a legitimate and widely used planning tool. The 2024 Autumn Budget tightened some IHT rules (including future pension IHT changes from 2027) but did not abolish FICs. They continue to offer significant advantages for corporate-rate profit retention and intergenerational share gifting.

 

Can I extract profits from a holding company more efficiently than a trading company?

Yes. A holding company receiving dividends from subsidiaries pays no corporation tax on those dividends (UK participation exemption). It can then make pension contributions, pay a controlled salary, or reinvest — all at the Holdco level — before any personal extraction.

 

What is group relief and how does it help a property group?

Group relief (CTA 2010 s.97) allows losses in one 75%-owned group company to be surrendered to offset profits in another, reducing the group’s overall CT liability in the year. This is particularly valuable when one development SPV makes a loss in the same year that others are profitable.

 

Are LLPs still used in property structures?

Yes — particularly where flexible annual profit allocation between partners is required, or as a stepping stone to incorporation. An LLP operating as a genuine property business can later be incorporated with SDLT partnership relief applying to the transfer.

 

How should I document inter-company transactions in a group?

Every inter-company loan, management charge, rent, and dividend must be documented by a formal agreement. HMRC may challenge arrangements where transactions appear uncommercial. The transfer pricing rules (TIOPA 2010) require arm’s-length pricing for transactions between connected parties in a UK group.

 

 

Build a property business structure that scales with you. Felix Accountants delivers bespoke framework design for serious UK investors. Book Your Structure Consultation

 

 

 

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Pension Property Investment Benefits

Benefit	Detail
No income tax on rent	Rental income received gross — accumulates tax-free within the pension
No CGT on sale	Any capital gain realised by the pension is entirely exempt from CGT
Tax relief on contributions	Employer contributions into SSAS/SIPP are deductible against corporation tax
Tax-free compounding	All returns reinvested without tax erosion
Asset protection	Pension assets are legally separate from personal/company assets — creditor protection
IHT Warning — Pensions from April 2027
Currently, pension death benefits pass outside the IHT estate. From April 2027, HMRC proposes to bring some pension death benefits within the IHT charge. The rules are not yet finalised. Review your pension and estate plan annually and take updated advice before making long-term IHT planning assumptions based on pensions.

 

Pension Property Investment: SSAS vs SIPP

Feature	SSAS (Small Self-Administered Scheme)	SIPP (Self-Invested Personal Pension)
Who is it for?	Company-sponsored — directors and family members	Individuals and professionals without a trading company
Membership	Up to 11 members	Individual (though joint purchases possible)
Investment control	Trustees (usually directors) make all decisions	Managed through FCA-authorised provider
Loan-back facility	Yes — up to 50% of net assets lent back to sponsoring company	No — SIPPs cannot lend to connected persons
Flexibility	Highest — can pool assets between members	High — but within provider’s permitted investments
Best suited for	Business owners buying trading premises for their company	Independent investors seeking direct commercial property exposure

 

Pension Property Investment Rules for Commercial Property

Both SSAS and SIPP can purchase commercial property: offices, retail units, industrial premises, warehouses, and land intended for commercial development. Residential property is almost never permitted — HMRC’s ‘taxable property’ rules impose punitive charges of up to 55% of the property value on prohibited residential investments.

The Residential Property Prohibition

A house or flat cannot be held in a SSAS or SIPP. Even a flat above a shop may be problematic unless the residential element is clearly incidental to the commercial use and let to a completely unconnected third party at full market rent. Always obtain written confirmation from the pension provider and HMRC specialist before proceeding.

 

Pension Property Investment Purchase Process

1. Establish or review the SSAS/SIPP — confirm registration with HMRC, available funds, and borrowing headroom
2. Identify a suitable commercial property and confirm eligibility with the pension provider
3. Obtain an independent market valuation from a RICS-qualified surveyor
4. Agree purchase terms — the pension scheme buys directly, sometimes jointly with the sponsoring company
5. Appoint solicitors and coordinate legal transfer — all rent thereafter must flow to the pension’s bank account
6. Maintain ongoing compliance: market-rate rent, buildings insurance, annual scheme accounts

 

Strategic Uses: Business Owners

• Buy your company’s trading premises: the business pays rent into the pension instead of to a third-party landlord
• Succession planning: SSAS members can include next-generation family members
• Business funding: SSAS loan-back allows the pension to finance company growth at interest rates retained within the scheme
• Channel property company profits into the pension to reduce corporation tax and reinvest within a tax-free wrapper

Related Reading

How to pay yourself from your property company | Pass on property wealth without paying too much tax | Advanced company structures for property entrepreneurs

Frequently Asked Questions

Can a SIPP or SSAS buy residential property?

No. Residential property is ‘taxable property’ under HMRC rules. If held in a pension, HMRC imposes an unauthorised payment charge of up to 55% of the property’s value. Only commercial property qualifies for direct pension ownership.

 

How much can a pension borrow to purchase property?

Both SSAS and SIPP schemes can borrow up to 50% of their net assets at the time of borrowing. The loan must be at a commercial interest rate and repaid within a reasonable term.

 

What happens to the property when I retire?

The pension can continue to hold the property and generate rental income to fund drawdown payments. Alternatively, the property can be sold at any time, with proceeds available for drawdown. CGT does not apply to disposals within the pension wrapper.

 

Can I rent my company’s premises from my SSAS pension?

Yes. This is one of the most powerful uses of a SSAS. Your company pays rent at full market value to the pension, generating a corporation tax deduction for the company and tax-free rental income growth for the pension. The lease must be formally documented and market rent confirmed by an independent surveyor.

 

What is the annual allowance and does it limit pension property investment?

The annual allowance (£60,000 for 2025/26) caps total pension contributions — employer plus employee — that receive tax relief. It limits how quickly you can build pension funds. However, existing pension assets can be used to buy property immediately, and prior-year carry-forward provisions can boost contribution levels.

 

 

A pension-owned property is one of the most tax-efficient assets available to UK business owners. Let Felix Accountants show you how to structure yours. Book Your Free Pension Property Consultation

 

 

 

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Making Tax Digital for Income Tax Self Assessment (MTD ITSA) becomes mandatory for many UK landlords from 6 April 2026. Landlords with annual property income above £50,000 will need to maintain digital records, use HMRC-compliant software and submit quarterly updates to HMRC. This is far more than a paperwork change — it requires a complete shift to digital record-keeping and ongoing reporting. Landlords who prepare early will find the transition straightforward, while those who delay risk penalties, errors and last-minute compliance pressures.

Making Tax Digital Timeline for Landlords

Date	Threshold	Who Is Affected
6 April 2026	Gross property/self-employment income >£50,000	Higher-income landlords and self-employed individuals
6 April 2027	Income threshold reduces to £30,000	Mid-income landlords added to scope
6 April 2028	Income threshold reduces to £20,000	Majority of active landlords now within scope
TBC (2030s)	MTD for Corporation Tax	Companies including property SPVs — date under consultation

 

What Making Tax Digital Requires in Practice

1. Keep digital records of all income and expenses using HMRC-approved software
2. Submit quarterly updates to HMRC (summarising income and expenditure for each property)
3. Submit an End-of-Period Statement (EOPS) at year end to finalise figures
4. File a Final Declaration (replacing the traditional annual self-assessment return)

What HMRC Means by ‘Digital Link’

HMRC requires that data flows electronically from its point of origin to the HMRC submission — without manual re-entry. This means you cannot use a spreadsheet to calculate figures and then re-key them into submission software. The connection must be digital throughout the chain.

 

Records You Must Keep for Each Property

Record Category	Examples	Retention Period
Rental income	Bank statements, rent receipts, tenant invoices, deposit records	5 years after filing deadline
Allowable expenses	Repair invoices, insurance certificates, management fee statements	5 years after filing deadline
Finance costs	Mortgage statements (interest element), loan agreements	5 years after filing deadline
Capital items	Receipts for improvements (for CGT records)	Indefinitely while property is held + 5 years
Legal & tenancy documents	Tenancy agreements, safety certificates, notices	Life of tenancy + 5 years

 

Recommended Digital Accounting Platforms

• QuickBooks Online — strong bank-feed integration; suitable for multi-property portfolios
• Xero — excellent reporting and multi-entity management for company portfolios
• FreeAgent — designed for smaller property portfolios and sole traders
• Landlord Vision / Arthur Online — property-specific platforms with direct HMRC integration

 

Making Tax Digital Compliance Mistakes to Avoid

• Using spreadsheets alone without an HMRC-approved digital link to the submission system
• Mixing personal and property business transactions in the same bank account
• Recording expenses retrospectively from memory rather than at the time of payment
• Ignoring small receipts — mileage logs, postage, cleaning supplies all add up significantly
• Failure to reconcile bank feeds monthly, leading to duplicates and errors in submissions

Related Reading

Allowable expenses for property investors | Serviced accommodation and HMO tax guide | Furnished Holiday Let tax benefits and compliance

Frequently Asked Questions

Do I have to use MTD if I earn less than £50,000 from property?

Not from April 2026, but the threshold reduces to £30,000 from April 2027 and £20,000 from April 2028. Starting to use compliant digital software now means the transition will be seamless when your threshold is reached.

 

Can I continue using a spreadsheet for my property records?

Only if it uses a HMRC-compliant bridging solution that maintains a digital link to the submission platform. A spreadsheet used in isolation and then re-keyed into another system will not meet the MTD requirements.

 

What does a quarterly MTD submission contain?

Each quarterly submission summarises total income and total expenses for the period. It is not a tax return — you are not paying tax quarterly. It simply updates HMRC’s view of your position throughout the year, with the Final Declaration at year-end confirming the total.

 

Are limited companies included in MTD ITSA?

No. MTD ITSA covers individual landlords and self-employed people. Companies (including property SPVs) will be subject to a separate Making Tax Digital for Corporation Tax regime, which is still under consultation and expected later in the decade.

 

What are the penalties for non-compliance with MTD?

HMRC operates a points-based penalty system for late MTD submissions. Each missed quarterly update accrues a penalty point, and a financial penalty is triggered once a threshold is reached. The penalties escalate for persistent non-compliance.

 

 

Don’t leave your MTD compliance to chance. Felix Accountants provides end-to-end digital bookkeeping support for UK landlords. Get MTD-Ready with Felix Accountants

 

 

 

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Furnished Holiday Lets occupy a uniquely privileged position in the UK tax system. Unlike standard residential rentals — which are treated as passive investment income — qualifying FHLs are treated as a business, unlocking capital allowances, full finance cost relief, and Business Asset Disposal Relief at 10% CGT on sale. The catch: HMRC’s qualification tests are specific, and failure to meet them costs all these advantages.

Furnished Holiday Let HMRC Qualification Rules

Test	Requirement	How to Meet It
1. Availability	Property must be available to let commercially for at least 210 days per year	Schedule availability from day one of the tax year; document using booking platforms
2. Actual letting	Property must be actually let to paying guests for at least 105 days per year	Track each booking carefully; owner use days do not count toward the 105
3. Pattern of occupation	No single letting may exceed 31 consecutive days; lets over 31 days cannot exceed 155 days in total per year	Avoid monthly or long-term bookings; structure stays at under 31 days
The Grace Period Election
If your property fails the 105-day letting test but you can show genuine commercial intent and circumstances beyond your control prevented letting (e.g. refurbishment, storm damage), you can elect for the grace period rule for up to two consecutive years. You must file the election within one year of the 31 January following the tax year.

 

Furnished Holiday Let Tax Benefits

Tax Benefit	Detail	Why It Matters
Full mortgage interest deduction	Section 24 restriction does not apply to FHLs	Higher-rate taxpayers can deduct interest in full, not just a 20% credit
Capital allowances	Furniture, fixtures, kitchen equipment, heating systems, CCTV	Reduces taxable profit in early years; particularly valuable for new or refurbished FHLs
Business Asset Disposal Relief	CGT rate of 10% on qualifying gain on sale	vs 18% or 24% for residential property — a significant saving on exit
Pension contributions	FHL profits count as ‘relevant earnings’	Enables much larger pension contributions and associated tax relief
IHT — Business Property Relief	Possible where genuine commercial activity is proven	Can exempt up to 100% from IHT if HMRC accepts the property as a business
Income splitting (spouses)	Profits can be split in any ratio by simple election	Utilise each spouse’s lower-rate band independently

 

Furnished Holiday Let VAT and Business Rates

Once FHL turnover exceeds £90,000 (2025/26), VAT registration is mandatory. Short-term holiday accommodation is standard-rated at 20%. Being VAT-registered allows you to reclaim input VAT on cleaning, utilities, advertising, and refurbishment costs.

Most FHLs are assessed for business rates rather than council tax. Where the rateable value is under £15,000, small business rates relief may reduce or eliminate the liability entirely.

Furnished Holiday Let Record-Keeping Requirements

• Booking records: dates, duration, names, and revenue for each let throughout the year
• Owner-occupancy records: all personal use days must be recorded (they count against availability)
• Capital allowance schedules: invoices for all qualifying expenditure on fixtures and equipment
• VAT records: output tax on letting income; input tax on all business expenses
• MTD-compliant digital records: mandatory from April 2026 for turnover above £50,000

 

FHLs in a Wider Portfolio Strategy

• Diversification: short-term holiday income complements long-term rental income during economic cycles
• Capital allowance planning: FHL allowances can offset taxable income from other property activities
• Exit strategy: converting a buy-to-let into an FHL before sale may access the 10% BADR rate
• Corporate ownership: a company operating multiple FHLs consolidates VAT, benefits from full interest relief, and reinvests profits efficiently

Related Reading

Serviced accommodation and HMO tax guide | VAT and property — when does it apply? | Property records and Making Tax Digital

Frequently Asked Questions

Does HMRC still offer FHL tax benefits in 2025?

Yes. Despite consultation on reform, the FHL tax regime remains in place for 2025/26. Qualifying properties continue to benefit from full interest relief, capital allowances, BADR on sale, and pension contribution eligibility. Always check for any legislative updates in the annual Budget or Finance Act.

 

Can I own my FHL through a limited company?

Yes. A company owning FHL properties benefits from full interest deductibility, can VAT-register the business, and reinvests post-tax profits at 19–25% rather than the owner’s personal rate. The BADR 10% CGT rate applies only to individuals — companies pay their standard corporation tax rate on any gain.

 

What if I fail the 105-day letting test in one year?

If your FHL fails the actual-letting test for one year but you intended to meet it and were prevented by circumstances outside your control (e.g. flood damage, forced refurbishment), you can elect for the grace period rule for that year, retaining FHL status without penalty.

 

Do I have to charge VAT on my holiday let income?

Only once your annual FHL and short-term accommodation turnover exceeds £90,000 (2025/26 VAT registration threshold). Below this, voluntary registration may still be beneficial if you incur significant VAT on refurbishment or ongoing costs.

 

What CGT rate applies when I sell my FHL?

Where Business Asset Disposal Relief applies — which requires the FHL to have been run commercially for at least two years immediately before sale — the CGT rate is 10% on qualifying gains. Without BADR, the standard residential property CGT rates of 18% (basic rate) and 24% (higher rate) apply.

 

 

Don’t let HMRC disqualify your FHL status. Book a compliance review with Felix Accountants and protect your tax advantages. Book Your FHL Compliance Consultation

 

 

 

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If you want to reduce Stamp Duty UK property taxes legally in 2025, several SDLT reliefs and exemptions may be available. Understanding the rules before you buy can save thousands of pounds and prevent costly mistakes. Stamp Duty Land Tax (SDLT) is one of the most significant costs in UK property acquisition — and one of the most frequently miscalculated. From April 2025, the temporary thresholds introduced in 2022 have reverted, making SDLT planning more important than ever. This guide covers every legitimate relief available to UK property investors.

SDLT Rates From April 2025 (England and Northern Ireland)

Portion of Purchase Price	Standard Rate	Additional Dwelling Rate (+3%)
Up to £125,000	0%	3%
£125,001 – £250,000	2%	5%
£250,001 – £925,000	5%	8%
£925,001 – £1,500,000	10%	13%
Over £1,500,000	12%	15%
Additional Surcharges to Note
Non-UK residents pay an additional 2% surcharge on residential purchases. Companies buying residential property for £500,000+ face a flat 15% rate — unless the purchase is for genuine letting, development, or employee housing purposes. SDLT must be filed and paid within 14 days of completion.

 

Strategy 1: Reduce Stamp Duty Through Mixed-Use Classification

Non-residential and mixed-use properties (with both commercial and residential elements) attract much lower SDLT rates and are exempt from the 3% surcharge. A building with a ground-floor commercial unit and flats above qualifies as mixed-use — a detail that can save tens of thousands on a single purchase.

SDLT Band (Non-Residential)	Rate
Up to £150,000	0%
£150,001 – £250,000	2%
Above £250,000	5%

 

Strategy 2: Reduce Stamp Duty Using Multiple Dwellings Relief

When purchasing more than one dwelling in a single or linked transaction, MDR allows SDLT to be calculated on the average price per dwelling rather than the total. This consistently produces a lower bill on portfolio purchases and property conversions.

MDR Example: Two Flats at £500,000 Total

Without MDR: SDLT calculated on £500,000 at residential rates + 3% surcharge. With MDR: Average price = £250,000 per flat; SDLT calculated on £250,000 × 2 = substantial saving. MDR requires each dwelling to have its own entrance, kitchen, and bathroom facilities — annexes must genuinely qualify as separate dwellings.

 

Strategy 3: Reduce Stamp Duty Through Main Residence Relief

If you sell your main residence and buy a replacement within three years, the 3% additional-dwelling surcharge on the new purchase can be reclaimed. This relief requires careful timing — sell before you buy to avoid the surcharge entirely, or claim a refund afterwards if you buy first.

Strategy 4: Reduce Stamp Duty by Avoiding the 15% Company Rate

Companies purchasing residential property for £500,000+ face a flat 15% SDLT rate — unless an exemption applies. Exemptions include properties held for qualifying property rental businesses, properties acquired by property development companies, and properties occupied by employees as conditions of employment.

Strategy 5: Reduce Stamp Duty on Commercial Property with TOGC

On commercial property acquisitions, structuring the purchase as a TOGC eliminates VAT from the purchase price. Since SDLT is calculated on the total consideration (including VAT where applicable), eliminating VAT also eliminates SDLT on the VAT element — a compounding saving on large commercial deals.

Common Mistakes That Prevent You From Reducing Stamp Duty

• Classifying mixed-use properties as purely residential — common and costly
• Failing to claim MDR on annexes or separate dwellings within a single purchase
• Missing the three-year window to reclaim the 3% surcharge on main-residence replacement
• Not evidencing business intent for corporate purchases facing the 15% rate
• Missing the 14-day filing deadline — late filing attracts automatic penalties

How SDLT Reviews Can Help Reduce Stamp Duty Costs

HMRC allows amendments to SDLT returns within 12 months of the filing date. If you believe you have overpaid — for example, by missing MDR or a mixed-use classification — a professional SDLT review can often recover significant sums within this window.

 

Related Reading

Transfer property into a company without paying tax | Property development SPV structures | Property portfolio demergers — splitting your holdings

Frequently Asked Questions

What is the 3% SDLT surcharge and when does it apply?

The 3% additional-dwelling surcharge applies whenever a purchaser owns (or part-owns) another residential property at the end of the day of purchase, and the new purchase is not their replacement main residence. First-time buyers are not exempt from this surcharge if they already own a rental property.

 

Can I reclaim SDLT if I overpaid?

Yes, within 12 months of the filing date (14 days after completion). You can amend the SDLT return or make a standalone claim. Common grounds include missed MDR, incorrect mixed-use classification, or changed circumstances (e.g. a sale that qualified as a TOGC).

 

Does Multiple Dwellings Relief still apply in 2025?

Yes, MDR applies for purchases completed in England and Northern Ireland up to the current legislation. Scotland has its own Land and Buildings Transaction Tax (LBTT) rules — see felixaccountants.com/land-and-buildings-transaction-tax-mdr-guide-for-scotland-2025/ for Scottish relief guidance.

 

What SDLT do I pay as a non-UK resident buying UK property?

Non-UK residents pay a 2% surcharge in addition to all other applicable rates. For a buy-to-let purchase at £400,000, this means standard rates + 3% surcharge + 2% non-resident surcharge — making pre-purchase planning essential.

 

Is there SDLT relief for incorporating a property portfolio?

Yes, potentially. SDLT partnership relief (Schedule 15 FA 2003) can eliminate SDLT on property transferred from a genuine business partnership into a company. The partnership must be proven through formal accounts, SA800 returns, and a separate bank account. See our incorporation relief article for full details.

 

 

Never pay more SDLT than you legally owe. Proper planning can help you reduce Stamp Duty legally and keep more of your investment returns. Book a consultation with Felix Accountants before exchanging contracts. Book Your SDLT Consultation

 

 

 

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Property development offers the highest potential returns of any property strategy — but it also carries the most risk and tax complexity. A poorly structured development project can expose profits to unnecessary corporation tax, personal liability, and HMRC challenge. Using a Special Purpose Vehicle (SPV) resolves most of these risks at the cost of disciplined administration.

Property Development SPV Structures Explained

An SPV is a company created solely to undertake a specific development project. It holds the land, contracts with builders and professionals, receives the sales proceeds, and closes (or lies dormant) once the project is complete. Lenders almost always prefer SPVs because security can be taken against a clean, ring-fenced entity without exposure to your other activities.

Why Property Development Projects Use SPVs

• Legal and financial separation between each project
• Clean accounting: performance is measurable per project
• Lender confidence: security is limited to the SPV’s assets
• Insolvency isolation: failure of one project does not contaminate others
• Flexible profit extraction: dividends, management fees, or capital distribution on wind-up

 

Tax Treatment of an SPV

An SPV is taxed as a standalone company. Corporation tax at 19–25% applies to profits. The critical distinction in a development context is whether the company is developing properties for sale (trading) or for long-term retention (investment).

Activity Type	Tax Treatment	Key Implication
Development for sale (trading stock)	Profits are trading income — corporation tax at 19–25%	No CGT relief; full cost deduction including land and build
Development then retained for letting (investment)	Property is a capital asset; rental income taxed; gain on disposal is CG	Capital allowances may apply; different accounting rules
Mixed: develop some, retain some	Requires careful apportionment between trading and investment	Transfer to investment subsidiary should be at market value

 

Funding and Ownership Structures

Development projects are rarely fully equity-funded. Common structures include a sole-shareholder SPV (developer provides all capital and management); a joint-venture SPV (multiple shareholders in agreed proportions); and a development management structure (developer earns a fee from the SPV rather than a profit share). Where outside investors are involved, a shareholders’ agreement must document profit-sharing, decision rights, and exit mechanisms.

VAT Registration for SPVs

Register the SPV for VAT promptly — ideally before the first professional invoice. New residential construction is zero-rated, allowing full input VAT recovery on all build costs. Registering late means losing VAT on early-stage costs permanently.

 

SDLT on Land Acquisition

When the SPV acquires the development land, SDLT is payable on the purchase price. Non-residential SDLT rates apply to bare development land, which are considerably lower than residential rates and carry no additional-dwelling surcharge.

SDLT Band (Non-Residential)	Rate
Up to £150,000	0%
£150,001 – £250,000	2%
Above £250,000	5%

 

How to Extract Profits from a Property Development SPV

Once a development is complete and proceeds received, profits can be extracted via: (1) dividends to shareholders after corporation tax; (2) management fees to a parent service company; or (3) capital distribution on formal winding up of the SPV — potentially qualifying for lower capital gains rates if structured correctly as a distribution in specie.

Related Reading

VAT and property — when does it apply? | Advanced company structures for property entrepreneurs | How to reduce stamp duty legally

Property Development SPV FAQS

Do I need a new SPV for every development project?

It is best practice to use a separate SPV for each significant project. This ring-fences risk, simplifies accounting, and satisfies lender requirements. For small projects, one SPV can handle multiple phases if risk profiles are similar — but seek advice first.

 

Can I use an LLP instead of a limited company as an SPV?

Yes. An LLP SPV is used where flexible profit allocation between partners is important, or where the development involves joint venture parties who need income-taxed rather than dividend-taxed returns. LLPs are tax-transparent — profits flow to members and are taxed personally.

 

How is development profit taxed versus rental income?

Development profit (from sales of developed property) is taxed as trading income under corporation tax (19–25%). Rental income from retained properties is investment income — taxed differently, with different expense rules and no capital allowances on buildings.

 

What happens to SDLT when land is transferred into an SPV?

SDLT is payable on land acquisition by the SPV at non-residential rates (lower than residential). Where the land is transferred from a related partnership or group company, group relief or reconstruction relief may reduce or eliminate SDLT.

 

Can my SPV borrow against land it acquires before planning is granted?

Yes. Bridging finance on development land pre-planning is common, though rates are higher. The SPV’s ability to borrow is ring-fenced to its own assets and the developer’s guarantee — another reason why SPV structure is valued by lenders.

 

 

Structure your next development correctly from day one. Book a consultation with Felix Accountants — specialist property development advisers. Speak to a Property Development Tax Specialist

 

 

 

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