You’ve found the site, crunched the numbers and you’re ready to begin, but one of the most important decisions comes before the build even starts: How should you structure the project?

Getting the structure right from the outset can be the difference between tax efficiency and overpayment, seamless finance and blocked deals, or even protecting your wealth vs exposing your family assets.

What Is an SPV and When Is It Best?

A Special Purpose Vehicle (SPV) and a trading limited company are created solely for one specific property project. It has no other trading activity and exists to ringfence that deal, whether it’s a flip, build-to-sell or small joint venture.

SPVs are often the preferred option when:

• You’re seeking development finance
• You’re working with investors or JV partners
• You’re planning to sell on completion
• You want a clean company structure for tax or exit

They provide clarity, simplicity and clean record-keeping, which lenders and buyers love.

Pros and Cons of Using Your Trading LTD Company

You can run a development through your existing trading limited company, but it’s not always the best choice.

Pros:

• No need to set up a new entity
• Simpler admin if your business is small or closely held
• May make sense for long-term holds or internal projects

Cons:

• Harder to track project-specific costs
• Risk of mixing unrelated income streams (e.g. property + consultancy)
• Can impact finance, tax planning, and exit strategy
• Higher risk to the business if the development faces issues

We usually advise separating your trading business and property activity, especially if you’re planning to scale, take on partners or need structured finance.

Tax and Legal Differences Between Structures

Both SPVs and Trading LTDs are limited companies under UK law, but how you use them affects your tax planning.

• SPV structure: clearer allocation of costs, profit, and capital. Easier to manage Corporation Tax, VAT registration, and potential capital allowances claims
• Trading company: risk of muddled accounting, potential VAT complications and more scrutiny from HMRC if trading and development are mixed

From a legal standpoint, SPVs are often essential when involving external investors, SSAS pensions, or family trusts, keeping ownership and liability clean.

Impact on Finance, Insurance, and Partnerships

Lenders love SPVs. Why? Because they provide a clean, ringfenced structure with clear security. Trying to raise development finance through a trading company can be more complex, especially if it holds other assets or runs unrelated operations.

Insurance and risk management are also cleaner in an SPV, you can ringfence liabilities, separate contractor risks and protect your core business from development-related claims.

For joint ventures, SPVs are essential. They allow for clearly defined shares, contracts, and exit routes, whether your JV partner is family, a friend, or a corporate investor.

Real Examples of Structures That Work

At GoldHouse, we’ve supported developers across the UK and Dubai with project structures that enable growth, reduce tax, and protect assets.

→ A developer flipped 3 homes through individual SPVs, keeping costs and profits clean and easily reportable to HMRC, while preserving investor trust.
→ A client using a trading LTD to offer consultancy and development switched to a group structure, holding property assets under SPVs and using a central holding company to manage profits and inter-company loans.
→ An international developer used a UK SPV alongside a SSAS pension, allowing them to invest tax-efficiently in commercial property and reduce their overall tax exposure.

What Smart Structuring Looks Like in Practice

When you work with GoldHouse, we don’t just tick compliance boxes, we structure your business for growth, clarity and legacy. Whether you’re starting your first project or expanding into multiple developments, we’ll help you:

• Reduce tax
• Secure funding
• Protect your family’s wealth
• Build the financial freedom you’ve been working for

Start smarter. Build stronger. Plan for legacy. Contact us today.