The war on property investors goes on.
For those that were not aware the Finance Act 2016 received Royal Assent last month. One of the more interesting items that got through the Finance Bill without little fanfare was the changes to UK property development/land transactions.
In effect the Finance Act confirms the tax treatment of UK land/property is subject to income tax if certain conditions are met.
In other words, taxpayers cannot claim capital gains tax treatment meaning the profits could be subject to as much as 45%
One of those conditions is that the main purpose or one of the main purposes of acquiring the land/property was to realise a profit or gain from disposing of the land.
Question therefore is how many clients actually acquire land/property to make a loss!!
If this is an issue for you, please get in touch.