An Introduction
to Property Tax

Chair
David Southern, Barrister at Law, 3 Temple Gardens Tax Chambers

Speakers
Patrick Cannon, Barrister at Law, Tax Chambers, 15 Old Square
Jo Goldby, Partner, Head of Private Client Department, Howard Kennedy
Chris Hart, Chartered Surveyor, Hart Consulting Ltd
Stephen Herring, Tax Partner - Real Estate & Construction, BDO Stoy Hayward
Tony Llewelyn, Managing Partner, Davis Langdon Crosher & James
Lorraine Parkin, Partner, RSM Robson Rhodes
Matt Probert, Senior Tax Manager – Real Estate, Hospitality & Construction, Ernst & Young LLP

Corporation Tax and Income Tax Aspects of Acquiring Property
• Importance of investment/trading distinction and taxation implications
• Tax efficient financing routes; corporation tax and income tax
• Optimising the utilisation of losses
• Lease premiums and other special tax rules affecting the taxation of property
• Recent developments

Tax Avoidance
• Avoidance and evasion
• Gordon Brown’s campaign to stamp out tax avoidance
• Reporting the use of tax avoidance schemes
• Examples of schemes that no longer work and that do work (for now)
• The non-resident route

Capital Allowances
• Wide application to property
• Principles of operation and benefits to taxpayer
• Qualifying expenditure and initial and writing down allowances
• Application to
- industrial buildings
- plant and machinery
- agricultural buildings
- flat conversions
- mineral extraction
• Land remediation relief
• Proposals for reform of the capital allowances system

Stamp Duty Land Tax
• Time for payment – by action or by deed
• Amount of payment
• Calculation of Net Present Value by lessees
• Deferred consideration, contingent liability, effect of changes within 5 years and after 5 years
• Self assessment and SDLT Returns
• Exempt transactions and exempt bodies
• Avoidance schemes

Value Added Tax
• General principles of VAT
• Types of supply, input and output VAT, and recovery of input VAT
• Zero rated supplies and residential development
• Property transactions - exempt and standard rated supplies
• Transfer of a Going Concern and property investments
• Demolition, repairs, refurbishment and development
• Avoidance schemes

Capital Gains Tax
• Capital assets and stock in trade – the badges of trade
• Value in March 1982 and indexation and taper reliefs
• Rollover relief for owner occupiers and for investors
• Exemptions from tax – residences, non-residents, charities
• Planning

Inheritance Tax
• Scope of inheritance tax: UK and offshore properties
• Joint tenants and tenants in common
• Valuation issues: co-ownership
• Lifetime gifts with and without reservation of benefit
• New income tax charge on benefits
• Tax planning – simple and complex mitigation schemes