Accountant for Property Developers
Capital Gains Tax Made Clear for Property Developers
If you are a property developer in the UK, you’ll know that tax can quickly become one of your biggest headaches. Between navigating capital gains tax (CGT), VAT on developments, and choosing the right ownership structure. It is easy to feel overwhelmed.
At IBISS & CO. we specialise in helping property developers like you reduce tax liabilities, avoid costly mistakes, and maximise profits on every project. Whether you are flipping properties, building to rent or managing a mixed portfolio. Our specialist accountants for property developers ensure your profits stay
Why Property Developers
Need Capital Gain Tax Advice
Most developers focus on build costs, sale prices, and funding tax often comes as an afterthought. But ignoring capital gains tax until the end of a project can result in higher than expected tax bills and missed tax relief opportunities.
IBISS & CO offers dedicated property tax advice for developers, ensuring you benefit from every available relief and exemption. We help you plan ahead from acquisition to disposal to legally reduce your CGT exposure.
How Capital Gains Tax
Applies to Property Development
Capital gains tax applies when you sell or dispose of a property asset for more than its purchase price. But for property developers, the tax treatment can vary based on how you structure your project and whether you’re seen as a trader or investor.
If you buy, renovate and sell properties for profit: HMRC may tax your gains as income, which means higher rates.
If you hold properties as long term investments: Gains are typically subject to CGT, with different rates for residential and commercial properties.
IBISS & CO ensures your tax position is correctly classified and planned to suit your business strategy whether flipping or holding.
Tax Wins for Property Developers
HMRC rules are complex. Our strategies aren’t. Keep more of what you earn.
Key Tax Reliefs and Planning
Strategies for Property Developers
Many developers miss out on valuable reliefs because they don’t seek specialist advice in time. At IBISS & CO, we help property developers unlock tax savings through reliefs such as:
Rollover Relief: Defer CGT when reinvesting proceeds into another qualifying property.
Business Asset Disposal Relief (formerly Entrepreneurs’ Relief): Potentially reduce CGT to 10 percent on qualifying disposals.
Capital Allowances on Commercial Conversions: Claim tax relief on fixtures within commercial properties converted to residential.
VAT Schemes for Property Developers: From the Margin Scheme to VAT exemptions on new builds. we’ll help you register and reclaim the maximum VAT possible.
Who We Work With
At IBISS & CO, we specialise in working with property professionals who need more than just basic accounting. Our tax experts support:
Property Developers
Whether you’re building to sell, flipping homes, or managing mixed-use developments, we’ll help you plan smarter and reduce taxes on every deal.
Residential &
Commercial Developers
From new builds to refurbishments and commercial to residential conversions.
Investors Running SPVs
We advise on tax-efficient SPV structures for property development projects and manage corporation tax, VAT, and CGT implications.
Landlords Converting
Properties for Resale
If you are moving from buy to let to property development, we’ll help you navigate tax changes and maximise your profits.
Joint Venture Developers
Advising on tax liabilities, profit sharing structures and CGT exposure in joint property projects.
Portfolio Developers Selling
or Restructuring Assets
Whether you’re building to sell, flipping homes, or managing mixed-use developments, we’ll help you plan smarter and reduce taxes on every deal.
Not sure if this applies to your property business?
Contact us for a quick tax review and we’ll clarify your position. You can also explore our landlord Tax Planning Services.
Common Tax Mistakes Property
Developers Make And How to Avoid Them
Lack of planning leads to avoidable tax bills, penalties, and missed reliefs. IBISS & CO proactively advises developers on how to avoid these common pitfalls:
Failing to Plan for CGT on Exit: Many only consider CGT once a sale is agreed. We help you plan from day one.
Overlooking VAT on Development Costs: Incorrect VAT treatment can add thousands to your costs.
Poor SPV and Ownership Structure Choices: The wrong legal structure can mean paying more tax than necessary.
Our tax experts offer tailored advice to structure your projects tax-efficiently from the outset.
SPVs and Tax Planning
for Property Development Projects
Using a Special Purpose Vehicle (SPV) a limited company set up solely for a development can offer major tax benefits:
Lower corporation tax rates.
Easier to claim allowable business expenses.
Flexible exit planning and CGT management
IBISS & CO advises on when to use an SPV, how to structure it, and how to manage taxes when selling or renting out developed properties.
No matter your situation our expert accountants will help you stay tax compliant, claim all allowable deductions and maximise your rental income.
Frequently Asked Questions (FAQs)
It depends on your intention. If you develop to sell, you might pay income tax; if you hold for investment, CGT applies. We can clarify your position and tax liabilities.
Residential properties: 18% (basic rate) or 24% (higher rate). Commercial properties: 10% or 20%. Reliefs can reduce this further.
If the property is your main residence, you will typically qualify for Private Residence Relief and won’t pay CGT on any gain when you sell it. However if the property has been let out, used for business or is a second home, CGT may apply on the portion of the gain not covered by relief.
If you are not sure about your tax position, our team can help clarify your obligations. Contact us today.
Yes. via Rollover Relief and other allowances, depending on your circumstances.
Usually yes, but with potential exemptions and zero-rated options for residential developments.
Check out our Buy-to-Let Tax Planning Guide for strategies to reduce your capital gains tax and manage your property profits tax-efficiently.
Speak to a Specialist Property Developer Tax Accountant Today
At IBISS & CO, we understand that no two property projects are the same and neither are their tax solutions. Our tailored tax advice for property developers ensures you pay less, plan smarter and grow faster. Speak to a dedicated accountant for property developers today and discover how much tax you could save.