faqs.org » Abstracts Index » Abstracts » Real estate industry

Pay by the rules

Article Abstract:

The 1997 United Kingdom Finance Act contains provisions to deal with commercial property transactions. The option to tax legislation is centered on property valued at over 250,000 pounds sterling. A tax liability will be placed on a financier, vendor, or lessor of land if they or their representatives do not occupy the land. The capital goods scheme is likely to be altered to include the renovation and reconstruction of properties. The new rules allow for some discussion with the Customs authorities before the taxes are applied.

Subdividers and developers, not elsewhere classified, Land Subdivision and Land Development, Tax Law, Public Finance Activities, Land Development, United Kingdom, Real estate industry, Tax policy

---

Incorporation of partnerships

Article Abstract:

It is likely that the traditional tax advantages of operating as a professional partnership will eventually be completely eliminated. This could in turn lead to widespread incorporation, which also has some advantages. These include limitation of liability to the assets of the business and availability of floating charges over the assets of the company. It is possible to avoid almost all taxation when switching over to incorporation.

Incorporation

---

New partnership rules

Article Abstract:

From Apr 06, 1997, all partnerships will be subject to taxation on a current year basis, moving away from the current system of taxation on a preceding year basis. Income tax will be payable by reference to the profits of the accounting period ending in the current year of assessment, with each partner's share of the tax liability being calculated by reference to the profit-sharing ratios in the year of assessment.

Partnership, Partnerships

Some parts © 2012 Advameg, Inc.