Real Estate Tax

Birketts’ Tax Team comprises over specialist lawyers, providing real estate tax advice to landowners, developers and investors, ranging from modest buy-to-let portfolios to large scale developments.

Our clients include individuals, trusts, farming partnerships, SIPPS, investment funds and developers, as well as public authorities and charities.

The Team helps landowners understand the tax consequences and avoid potential traps when disposing of their land for development. This may include advising in relation to overages and profit-sharing arrangements, as well as joint-venture structures. We also assist landowners to let their properties, or restructure their real estate portfolio, in a tax efficient manner that achieves current goals whilst providing flexibility for the future.

There are a number of tax consequences arising from the acquisition of UK land. We therefore help developers and investors navigate their way through the UK tax system, advising particularly in relation to Stamp Duty Land Tax, Value Added Tax and, where relevant, Capital Allowances and Land Remediation Relief. In relation to the latter two examples, we work with a specialist consultant to maximise claims.

The Team are also well placed to work alongside our very well regarded Charities and Public Sector Teams, providing tax assistance on general matters as well as sector-specific queries. We have a particular specialism advising social housing providers finance acquisitions, or refinance their existing stock, in a cost-effective manner.

Our lawyers are highly regarded and successfully deliver complex advice in a timely and commercial manner.

These transactions can have a number of related tax consequences and the team is experienced in advising in relation to Stamp Duty Land Tax, VAT, the Construction Industry Scheme and Capital Allowances. In particular we have expertise in:

• Stamp Duty Land Tax (SDLT) – whether advising in respect of agricultural, commercial or residential property, our team has a great deal of experience advising in relation to the SDLT consequences of a proposed purchase, the reliefs available and specific (and often complicated) rules that may relate to the transaction (such as rules relating to partnerships, land exchanges or residential property).
• Value Added Tax (VAT) – we regularly advise in relation to the transfer of a going concern (TOGC) rules, options to tax, the capital goods scheme and the VAT consequences of a landlord contributing to tenant’s works.
• Annual Tax on Enveloped Dwellings (ATED) – the team is well placed to advise on the ATED charges applying to high value residential properties owned by companies and other non-natural persons.
• Strategic Land Development – when selling land for development, it is important to consider the potential tax issues that may arise. For example, it is important to take advice on equalisation strategies, the receipt of overage payments and anti-avoidance rules that impose Income Tax rather than Capital Gains Tax).
• Overpayment of SDLT – we have successfully claimed relatively substantial repayments of SDLT for clients who initially overpaid due to the original advisers either failing to claim a relief or applying the wrong rate of SDLT.