Everyone is looking for the perfect investment. No matter the state of the economy at any given time, the search for stable and consistently profitable investments leads people to real estate. Owning property has continued to be one of the smartest investment choices for any investor to make.
For real estate and property investors in the UK, having an accountant that specialises in real estate is a must-have. Specialist property accountants provide accounting services that can reduce tax bills, increase tax returns and structure their property portfolios in a way that serves them at an optimal level from a tax and legal perspective, as well as provide other essential services.
Having a real estate accountant that has an in-depth knowledge of tax planning and a long-term vision can catapult what would be a modest real estate portfolio to generationally significant wealth. To do this, you need to be able to find an accountant that specialises in real estate and can give tax-efficient, as well as forward-thinking, real estate advice. What should the ideal real estate accountant be able to provide?
Real Estate and Property Taxes
Understanding the complexity and nuances of property taxes is critical for anyone purchasing UK property. Future tax obligations should be worked into your real estate purchasing plans. What type of tax obligations?
- Stamp Duty and Land Tax
- Landlord’s Income tax
- Inheritance Tax
- Capital Gains Tax
- VAT Tax
- Capital Allowances
The right real estate accountant will be able to walk you through all these areas and more, helping you make the best choices for today and tomorrow.
Having the right ownership structure in place, even before purchasing any property, can make a tremendous difference in your future returns on your real estate investments. Knowing how to own your investments is as important as the type of investments you buy.
When does it make sense to own real estate in your name? Should it be held in a limited company? Perhaps joint ownership is the right choice? Whether it be partnerships, corporate purchases, special purpose vehicles or any other type of ownership option, having the right structure will allow you to maximise your profits and reduce your tax burden.
Property Sector Expertise
There are many accountants and accounting firms with skills in tax accounting that could give property tax advice but what you want is an accountant with property sector expertise. The real estate and property business demand a level of expertise that other fields may not.
You need to be able to plan for purchasing, choosing the best property strategies, knowing your legal obligations as a real estate investor and more. Without property expertise, you may be exposing yourself to lost revenues or gains by not maximising available tax reliefs.
UK Buy and Let Properties
There are several ways that you can go about operating buy and let properties in the UK. Are you going to be a resident landlord? Will you simply have a management company run your rental affairs? What are the tax obligations for rental income and how can you minimise your tax burden? What is landlord’s income tax? How do your capital gains tax choices affect your future real estate purchases?
An accountant that specialises in real estate will navigate these waters with you, choosing the best path and options based on your long-term goals.
Are you building new real estate developments? If so, the construction industry has specific accounting and taxation regulations that pertain to new structures and complexes. The right real estate accountant should be able to help with everything from raising capital and structuring the funds to the completion of all the associated closing costs and tax obligations due at that time.
What type of properties are you building? Is it build to sell or build to rent? Is it going to be serviced accommodation? Knowing what to do with these answers is an important part of running a successful property company.
Property developers can leverage the immense potential of new real estate opportunities, but they need a specialised estate accountant at their side to help them make the right moves, at the right time.
It pays to keep your books in order, especially when you are investing in real estate. Your regular bookkeeping affairs such as income tax, mortgage funding, business plans, bank accounts and much more should be taken care of, ideally by the same people that do your real estate accounting.
Using a specialised real estate accountant will harmonise all your accounting needs under one umbrella. This makes it easier to spot oversights or inefficiencies, giving you the clearest financial runway to accomplish your real estate goals and dreams.
Finding an Accountant that Specialises in Real Estate
A specialised real estate accountant is critical for ambitious real estate and property investors. Understanding the dynamics of real estate investing is crucial to being able to provide proper, up-to-date and relevant tax advice.
To find the right specialised accountant, it takes knowing what to look for. Look for an accountant that has in-depth knowledge of these areas and more and they will be able to help grow your real estate empire by streamlining your financials and giving you the room to grow.