Property Development – Corporation Tax Implications

Property Development – Corporation Tax...

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A client has set up a company as a property developer. The company has bought land on which it has obtained planning permission to build several houses for sale. Could anyone advise on the tax treatment in the annual accounts of the stamp duty land tax and related legal costs associated with the land purchased for development? Also the consultancy fees paid to carry out access feasibility work.

Many thanks in anticipation.

Paul

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By geoffwolf
18th Dec 2007 13:47

development is trading
all the costs you mention are part of the stock in trade. You will eventually need to apportion them accross the development assuming that the whole development and its disposal straddle more than one accounting period.

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By User deleted
18th Dec 2007 18:25

Thanks for your help.

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