Investment and
Commercial Property

Property development and investment in and around Aberdeen boomed during the heady days of the offshore gas and oil explorations. Companies and people swarmed to the Granite City. However, since the crash in the price of oil and the subsequent change in this market there has been a downturn in Aberdeen property development and occupancy rates have dwindled resulting in landlords having to renegotiate rents at tighter margins. Green shoots started to appear in 2016 when an increase in inward investment into the city resulted in office yields being marginally higher than the UK regional average of 6%. With continued growth in the alternative energy market, wind and wave energy receiving mainstream attention and the decommissioning of oil and gas fields, new industry, companies and people are being attracted to the City and surrounding areas. Both construction and investment in local property can benefit from this upturn in fortunes.

Specialist Property Accountants in Aberdeen

However, property owners need to tread with care. Owning investment property and running a property development business is complex and so the accounting and taxation aspects can also be problematic. Carnegie Knox can assist clients who are investing in Aberdeen property to navigate their way through the issues involved.  Their services encompass the full range of aspects that investment and commercial property owners encounter.

Property Ownership Structure

Choosing the right property ownership structure is key and needs to be considered in respect of suitability for the short term as well as the longer term strategy of the ownership. Carnegie Knox will help you consider the options from sole or joint ownership, partnership, company, special purpose vehicle, trust etc.

Property Tax

Property investment and development usually involve the minimum of transactions but in relation to trading companies the transaction tend to be high value. It is essential to ensure that there is a full consideration of the impact of all taxes before proceeding.

In Scotland Land and Building Transaction Tax (LBTT) is applied on all property purchases and leases whether for investment or development. Taxes relating to the running of the properties include VAT, Income Tax and Corporation Tax and Capital Gains Tax when the property is disposed. If the property is owned in a company, partnership or collective investment structure and is valued at over £500,000 then it will be liable to an annual tax – Annual Tax on Enveloped Dwellings.

Our advice follows strict principles of tax mitigation and helping clients avoid tax pitfalls and benefiting from all available reliefs.

Accounting

Tax liabilities arise out of how transactions are reflected in the accounts and so special consideration needs to be given as to how transactions are treated. Carnegie Knox has a thorough understanding of the accounting rules and the law governing their application. A full understanding of the intentions to invest in further property transactions, and short and longer term strategies need to be considered carefully.

New Project Appraisals and Finance

We can assist clients appraise proposed development projects and property investments in and around Aberdeen. Through our contacts with lenders we are also able to assist clients raise finance when required.

Owning and running a property business in and around Aberdeen can be a profitable occupation if the right advice is given. As local Aberdeen accountants, Carnegie Knox can provide insightful advice and tailor services around the needs of today’s savvy property investor.

Case Studies & News

Budget Date Announced

13 September 2017

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UK Autumn Budget Summary 2018

5 November 2018

Resource