Property developer - commencement of trade

Property developer - commencement of trade?

Didn't find your answer?

Hello,

If a company is intending to engage in property development, when would it be considered a trade has commenced? What would the usual trigger point be?  Would it be the signing of a contract to acquire its first property, with costs pre-this point all being preparatory costs, i.e. pre-trading spend? What about if the company has taken out a loan to buy its first property – would this be the start of the trade rather than the acquisition itself? I’ve tried to research this but all the examples I see relate to either manufacturing companies.

Cheers

A

 

Replies (1)

Please login or register to join the discussion.