16 Wakeling Island, Silverlake Dorset

Preserving capital

Our client sold a commercial property and needed to invest the proceeds of sale.

A tax efficient vehicle for reinvestment was sought with a view to rolling over a capital gains tax liability and a holiday rental investment property was decided upon as they qualify for business asset rollover relief.

Silverlake was identified as a perfect opportunity to enter this unique property market.

Silverlake is a 650 acre private estate where plots of land are sold with self build housing, which can be contracted out to onsite contractors.

A plot of land was purchased with stamp duty only being due on the barren land value rather than a completed property price.

Thereafter, a build contract was entered into with the on site contractors.

With the house finished and rented out under HMRC guidelines, the client has preserved its capital by rolling over the capital gains tax liability.

As well as satisfying HMRC’s tax requirements, the property also allows the owner to personally enjoy the benefits of the property and the wider estate, which are considerable.

With staycations likely to increase over the coming years, this may have been an accidentally shrewd investment for our client.

Our role in this project includes:

Initial client consultation to define project brief and objectives
Identify the plot and negotiate the land purchase and other terms for build contract and the long term asset management
Principal client liaison role with building contractor
Manage planning permissions to change house style and design from a pre consented design and build package
Interior design input
Fit out and furniture
Bring to market for holiday rentals