High-Level Structures For Tax Efficient Property Development
Here's some high-level things we need to think about when we're approaching the structure of carrying out a development.
How does that play out? If you buy it in a personal name, then you're looking at upwards of 47% tax, depending on your marginal tax rates.
Structuring Through A Company
Depending on the setup, you might pay 26% tax if you're classed as a business, or 30% tax if it's a bucket company or it's seen as investment income.
Structuring Through A Trust
At the end of the day, you actually choose who gets the profit of the development. If it’s a profitable development, Income tax could be one of your biggest taxes. So getting that right is critical and that relies heavily on your structure.