MWL FINANCIAL GROUP
SECTION – PROPERTY EXPERT
SUBJECT – The Margin Scheme
Hi I'm Jeff Banks, Business Advisor with over 30 years experience at MWL Financial Group specialising in property transactions.
For developers dealing in residential property the Margin Scheme can be useful in limiting the amount of GST applicable to the sale of a new property.
There are strict rules around the invoking of the Margin Scheme and decisions need to be made at the appropriate times to ensure is proper use. In general invoking the scheme allows for effectively a GST claim for the purchase of a residential property that may not normally have been transacted with GST allowing a credit against the eventual sale. Invoking the Margin Scheme does not allow us to claim inputs as the development ensues and expenses need to be quarantined to ensure this does not occur..
For more information contact us at firstname.lastname@example.org and either me, Jeff Banks or one of our experts will be more than happy to help.