Michael Ridsdale and Gemma Williams (Wedlake Bell) illustrate how to ensure certainty of tax treatment on the structuring of a residential property development.
There are many ways in which real estate can be developed into residential units for sale; one common scenario involves a developer approaching a landowner (with or without the involvement of a promoter) seeking a profit share in return for undertaking (and by doing so providing early-stage investment in relation to) the development. This can often be attractive for the landowner as they see such an arrangement as requiring little involvement from them – it can involve an upfront payment by the developer coupled with a form of overage/profit share. Situations where the developer does not purchase the land and sales of residential units are in fact made (in legal terms at least) by the landowner raise complex issues from a tax point-of-view generally (in addition to...
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Michael Ridsdale and Gemma Williams (Wedlake Bell) illustrate how to ensure certainty of tax treatment on the structuring of a residential property development.
There are many ways in which real estate can be developed into residential units for sale; one common scenario involves a developer approaching a landowner (with or without the involvement of a promoter) seeking a profit share in return for undertaking (and by doing so providing early-stage investment in relation to) the development. This can often be attractive for the landowner as they see such an arrangement as requiring little involvement from them – it can involve an upfront payment by the developer coupled with a form of overage/profit share. Situations where the developer does not purchase the land and sales of residential units are in fact made (in legal terms at least) by the landowner raise complex issues from a tax point-of-view generally (in addition to...
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