Property accountants
Property development accountants: trading versus investment, work in progress, CIS, VAT on new builds and conversions, and development company accounts.
Short answer
A development accountant treats your projects as trading stock rather than investment property, values work in progress at cost, runs CIS on subcontractors, and applies the zero and reduced VAT rates that new builds and conversions can attract.
Written and reviewed by Waqas Sagar Member of ICAEW, Fellow of ACCA, Fellow of AAT, a double graduate and entrepreneur at heart, helping startups grow and serving thousands of businesses nationwide with an excellent team. Published by LimitedCompany.Accountants, 12 London Road, Morden, London SM4 5BQ. Reviewed 12 September 2026 against 2026/27 UK rates and current Companies House and HMRC guidance.
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QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityA development accountant treats your projects as trading stock rather than investment property, values work in progress at cost, runs CIS on subcontractors, and applies the zero and reduced VAT rates that new builds and conversions can attract.
Trading, not investing
Work in progress and profit recognition
CIS and VAT
A development accountant treats your projects as trading stock rather than investment property, values work in progress at cost, runs CIS on subcontractors, and applies the zero and reduced VAT rates that new builds and conversions can attract.
Buying to build and sell is a trade. Profits are taxed as trading income, not capital gains, and the property sits in stock rather than as a fixed asset. Get this wrong and both the tax rate and the accounts presentation are wrong, which lenders notice.
Costs accumulate against each site: land, professional fees, construction, finance costs where capitalised. Profit is recognised on sale, not as work progresses, unless a contract genuinely transfers control over time. That means a heavy building year can look like a loss year, which the management accounts must explain.
The Construction Industry Scheme requires verification and deduction on subcontractor payments with monthly returns. VAT on residential new build is often zero rated, conversions can qualify for a reduced rate, and the domestic reverse charge applies between construction businesses. The rate decisions are project specific and worth getting in writing early.
Rates, thresholds and deadlines quoted here reflect the current UK position and current HMRC and Companies House guidance. Check GOV.UK, or ask us, before relying on them for your own business.
Local help
We work with company directors across London and Surrey from our office at 12 London Road, Morden, London SM4 5BQ. Pick your area, or send the form below and we will call you back.
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“We worked with a few different accountants before finally settling with Accotax, and we're really glad we did. They take the time to understand how our business works and what our needs are. Anum, who looks after our account on a day-to-day basis, including reconciling invoices and preparing the annual accounts, is amazing, professional, efficient, and follows the processes we have put in place together. Accotax has made our accounting experience much smoother and easier. We see them as a long-term partner as our business continues to grow. I would 100% recommend them.”
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“I had a positive experience with Accotax. The work was completed promptly, my tax return was successfully filed, and I received a refund of overpaid tax. I found the cooperation efficient and helpful. Special thanks to Muhammad Saifullah for his assistance.”
Frequently asked
Development for sale is trading income. Holding for rent and later selling is usually capital.
If you pay subcontractors for construction work as a contractor, yes, with monthly returns.
New residential build is typically zero rated on sale, which usually allows recovery of related input tax. It is project specific.
The answer depends on financing, existing gains, income tax rates, extraction plans and long-term ownership. Moving an existing property can trigger tax and legal costs, so compare the full life-cycle position before changing ownership.
Repairs that restore an asset are commonly revenue costs, while improvements and acquisition costs are usually capital. The distinction affects current tax relief and the gain on a later sale, so invoices should describe the work clearly.
Keep bank statements, sales and platform reports, purchase invoices, payroll records, VAT workings, finance agreements and Companies House correspondence. We confirm the exact list at onboarding and identify gaps before a filing deadline becomes urgent.
The fee depends on transaction volume, record quality, VAT and payroll requirements, historic catch-up and the level of reporting needed. We agree a fixed scope and price before technical work starts, with published packages available on our fees page.
Yes. We request professional clearance, collect the prior records and authorities, check the next Companies House and HMRC deadlines, and give you one clear handover list. The process is normally completed remotely.
Yes. We work through secure cloud records, scheduled reviews and digital approvals, while keeping a named team available by phone, video call and email. Clients can also visit our Morden office by appointment.
We regularly work with Xero, QuickBooks, FreeAgent, Sage and connected sales or expense apps. The right setup depends on transaction volume, integrations and the reports you need, not simply the software brand.
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Pick a time that suits you and a qualified accountant will call you about your company, deadlines and fees.
Appointments run monday to friday, 9:00am to 5:30pm. Your confirmation is emailed straight away.
