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Save Tax by Straddling the Year End the Right Way
Save Tax by Straddling the Year End the Right Way
By Marie walshe In Property Posted May 15, 2018 0 Comments

My client is a property developer company with a 31 March year end. The client is having issues with the builder and needs the contracts to be exchanged before the new tax year. The date of the exchange of contracts (i.e. the contract date of an unconditional sale) determined which year the sale was recognized in the accounts. So, for example, if contracts were exchanged on 1st March 2015, the house was complete and ready for occupation on 31st May 2015 and legal completion took place on 15th June 2015 the full sale proceeds would be recognized in the 2014/15 accounts with the balance of the sale proceeds and any further building costs to completion accrued at year end.

This would lead to a more advantageous tax rate and a higher profit as the tax rates were increased in the next year.

You are responsible for your own taxes, so don’t blame the taxman, However, if you need some help, make an appointment to see us by emailing mariewalshe@certax.co.uk

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