Tax is one of the most common stumbling blocks in RICS APC final assessment interviews. Although surveyors are not tax advisers, you are expected to understand how tax affects the projects and clients you work on, and when to recommend specialist advice. This post summarises the three areas of UK company taxation most relevant to surveying practice: Corporation Tax, VAT and the Construction Industry Scheme.
Tax influences nearly every decision a surveyor supports. A 5% VAT treatment instead of 20% can change the viability of a residential conversion. An incorrect CIS deduction can trigger HMRC penalties that erode project margin. A miscalculated Corporation Tax charge can distort a development appraisal or company valuation.
APC assessors expect candidates to:
Corporation Tax
Corporation Tax is charged on the taxable profits of UK-resident companies and the UK-source profits of overseas companies. For the 2024/25 tax year the rates are:
For a property company, Corporation Tax typically applies to rental profits, development profits and gains on investment properties. A trading developer pays tax on profit when a scheme completes and units are sold, whereas an investor pays tax on rental income annually and on any chargeable gain when an asset is sold.