Property Development - Tax Issues
We have a number of clients who operate as property developers so we have expertise and experience in this field of taxation.
There are special (and quite complex) clauses in the Income Tax Act 2004 governing the tax situation on the sale of land (whether it is improved or not)
Any person contemplating a land development should seek professional advice before the land is purchased and the development started.
A "development" from a tax point of view can be as simple as purchasing a property, renovating it and selling it for a profit.
A number of people have come to us after the land has been purchased, or worse, after the development has commenced. Ensure that you seek advice prior to any contract being signed to ensure that you are (as far as possible) protected from what is, in effect, a "capital gains" tax.