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Opportunity knocks

12 July 2016 / Peter Rayney
Issue: 4558 / Categories: Comment & Analysis

The mitigation of stamp duty land tax is illustrated by means of a practical case study.

KEY POINTS

  • Tax limits funds available for property reinvestment.
  • Companies can be an effective tax shelter when reinvesting rents in new properties.
  • The new 3% stamp duty land tax charge.
  • The importance of ensuring that a partnership exists rather than co-ownership.
  • Stamp duty land tax calculations if there are connected parties.
  • The case of Mrs EM Ramsay provides authority for the use of s 162 incorporation relief in a property business.

Many of my tax consultancy assignments over the past 18 months or so have been to advise property business owners on the incorporation of their residential commercial or ‘mixed’ property rental businesses. Such incorporations are often driven by the realisation that companies are an effective tax shelter for those who wish to use...

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