Experts at Mishcon de Reya examine recent developments that matter.
Hopscotch Ltd: property redevelopment not trade
In Hopscotch Ltd v HMRC [2019] UKFTT 288 (TC) the redevelopment of property not considered to be part of a property development trade.
The appellant company (C) purchased a residential property for £1.25m in 1993. C subsequently added certain features to the property and eventually put the property on the market with an asking price of £13.5m.
Due to a lack of interest in the property C was advised by the selling agents to modernise the property by redeveloping it to maximise its potential value. The director of C held a board meeting and resolved that C develop the property. C engaged consultants and applied for and obtained planning permission for the redevelopment. C borrowed funds to finance the construction work and the redevelopment took place between April 2016 and September 2017. The property...
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Experts at Mishcon de Reya examine recent developments that matter.
Hopscotch Ltd: property redevelopment not trade
In Hopscotch Ltd v HMRC [2019] UKFTT 288 (TC) the redevelopment of property not considered to be part of a property development trade.
The appellant company (C) purchased a residential property for £1.25m in 1993. C subsequently added certain features to the property and eventually put the property on the market with an asking price of £13.5m.
Due to a lack of interest in the property C was advised by the selling agents to modernise the property by redeveloping it to maximise its potential value. The director of C held a board meeting and resolved that C develop the property. C engaged consultants and applied for and obtained planning permission for the redevelopment. C borrowed funds to finance the construction work and the redevelopment took place between April 2016 and September 2017. The property...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
.jpg?sfvrsn=335a554c_0 "300 x 250 (MPU)")