Real estate transactions

This subtopic contains a core collection of Practice Notes, Precedents, Checklists and Tables that relate to common real estate transactions. The following types of transaction are covered in this subtopic:

•
buying and selling property
•
leasing property, and
•
developing property

The content will be useful for those advising on the tax issues which typically arise on these types of transaction. This subtopic covers direct tax (corporation, income and capital gains tax (CGT)), stamp duty land tax (SDLT) and value added tax (VAT). Capital allowances, the construction industry scheme and capital goods scheme implications are also covered.

If you are setting up a property holding structure see our : Property holding structures and tax subtopic. For further details on the direct tax treatment of property ownership see our: Direct tax treatment of property ownership subtopic.

For more detail on the property law aspects of real estate transactions see our subtopics:

•
Transferring Property
•
Leasing property
•
Property Development

Buying and selling property

Buyers or sellers of property will typically need to consider the SDLT, VAT and capital allowances implications of the transaction.

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

TAKE A FREE TRIAL

Latest Tax News

Tax weekly highlights—21 November 2024

This week's edition of Tax weekly highlights includes: (1) the Supreme Court decision in Refinitiv concerning the interaction between the diverted profits tax and an advance pricing agreement, and (2) the Supreme Court decision in Cobalt Data Centre on the scope of the enterprise zone allowance.

UT finds FTT made errors when setting aside HMRC best judgment assessment (HMRC v Sintra Global)

Tax analysis: In Sintra Global, the Upper Tribunal (UT) set aside the decision of the First-tier Tax Tribunal (FTT) insofar as it related to a notice HMRC had issued to an individual making him liable for the payment of a civil evasion penalty charged against a company he was a director of. The UT found that the FTT had failed to follow the guidance provided by the Court of Appeal in Pegasus Birds in relation to the assessment the penalty was based on.

Supreme Court rules on the scope and limitations of the enterprise zone tax incentive (R (oao Cobalt Data Centre) v HMRC)

The Supreme Court unanimously dismissed the taxpayers’ argument that the relevant expenditure fell within section 298(1) of the Capital Allowances Act 2001 (CAA 2001) and concluded that, based on the proper interpretation of that provision, the expenditure was not incurred under a contract executed prior to the conclusion of the initial ten-year period, as required. Adam Craggs, partner at RPC, discusses the implications that the judgment has on taxpayers going forward.

Consultation on expanding tax conditionality to new sectors

Environment analysis: On 30 October 2024, HM Revenue and Customs (HMRC) issued a consultation on ‘Tackling the hidden economy: expanding tax conditionality to new sectors’. The consultation runs to 21 January 2025. Angus Evers, partner at Shoosmiths, comments on the consultation.