Like most businesses, the real estate and construction sectors have been working frantically to keep their businesses going amid the toughest conditions they are ever likely to face. Working with Midlands Business Insider, the objective of the survey is not only to understand the difficulties these businesses are facing right now, but to discover if they have strong long-term growth plans in place to ensure future sustainability. To take part in the short survey, please click here.
Ray Abercromby, Tax Partner at professional and financial services firm Smith & Williamson in Birmingham explains:
“Looking to the future for real estate and construction businesses is not easy as they react to the present, but failure to do so will come at a cost. As these sectors begin to adjust to a ‘new normal’, it is vital to consider whether their long-term plans are robust enough to drive future growth and manage risks.
“There are ways of managing risks that businesses should consider. For example, where you have a combination of property development and property investment (for instance, holding properties that you have built), it’s worth looking to separate both so that the investment assets are not put at risk by the development arm. We are currently seeing a large number of projects where investment assets are being demerged from the trading arm. Now is a really important time to look closely at your business structure in the context of risk and make changes before those risks becomes reality.”
Julia Rosenbloom, Tax Partner at Smith & Williamson, says that it may be better for businesses to act now, within the existing tax regime, rather than put off any structuring or succession planning until a later date. Julia comments,
“With a number of tax changes on the horizon, including a likely increase in capital gains tax (CGT) rates and other tax reforms, now may be a better time for businesses to use the existing tax regime to their benefit. We know that the Chancellor is likely to bring in changes to tax at the next Budget, and while no one can predict what they will be, we are all acutely aware that the Government needs to find a way to fund the deficit caused by Coronavirus.”
“We are delighted to be teaming up with Midlands Business Insider on such an important survey. Now is a really good time for these businesses to consider what their top priorities are to drive growth. Working with our clients in these sectors we know that a strong business structure, including a robust succession plan, is the key to minimising risks and driving business growth. Giving consideration to these areas and putting structures in place, before taxes start to increase, could be of great benefit to business owners in the long-term”
The survey is targeted at businesses leaders in the real estate and construction sectors. To complete the short survey please click here. The survey will run until Friday 2nd October.
For further information or if you would like to discuss your specific circumstances, please contact:
Tax Partner, Smith & Williamson LLP
Tax Partner, Smith & Williamson LLP
Smith & Williamson is a leading financial and professional services firm providing a comprehensive range of investment management, tax, financial advisory and accountancy services to private clients and their business interests. The firm’s c1,800 people operate from a network of 12 offices: London, Belfast, Birmingham, Bristol, Cheltenham, Dublin (City and Sandyford), Glasgow, Guildford, Jersey, Salisbury and Southampton. Smith & Williamson is part of The Tilney Smith & Williamson Group.
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of publication.
Smith & Williamson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International.
The word partner is used to refer to a member of Smith & Williamson LLP.
Smith & Williamson Investment Management LLP is part of the Smith & Williamson group.
Smith & Williamson Investment Management LLP is authorised and regulated by the Financial Conduct Authority.