Minimising Tax on a new build development

[propertyguy]

Hi

I am looking for guidance here and ultimately to engage an accountant that can advise me on a fee basison the best structure to minimise taxation. Here is my scenario.

I am planning to start a residential property development of 10 new houses which has a projected sale value (GDV) of £3m. I am anticipating my total costs to be £2m, this includes, land, materials, labour and all other fees / interest. So for simplicity the Gross projected profit will be £1m. My personal taxation situation is that I am a higher rate tax payer, UK resident & domicile.

My understanding of the best way forward is to form a limited company with myself as 10% shareholder and sole director. I would then aim to close the limited company when all the sales are complete, I am anticipating this will take 14-18 months from start to finish. My understanding is that I will have to pay 20% corporation tax on the profits. so 20% of £1m = £200k. I then will be able to exit the company (by voluntary wind up?) and claim entrepreneurs relief and pay 10% on the gain = £80,000? So my totaly taxation on £1m gross profit will be £280000 or an effective rate of 28%.

Can anyone give any guidance of there is a better way to structure this?
What about claiming back VAT during for the materials or contract payments?

Thanks in advance.

propertyguy