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Veritas Blog for Harold Sharp Proptech

As part of our working relationship with Harold Sharp accountants we were recently requested to add an article on the new Structures and Buildings allowances for their Proptech initiative.

09 Dec 2019

Written by: Nolan Masters

Guidance on Structures & Buildings Allowance

It has taken HMRC a year since the Structure and Buildings Allowance (SBA) was announced in the November 2018 budget to publish the detailed guidance on its new tax give away for capital expenditure on all non-residential buildings.

09 Dec 2019

Written by: Clive Curd

New Case Law – HMOs and HMRC Enquiry Times

Another recent Case law ruling, Hora Tevfik v HMRC (2019) recently dismissed Capital Allowances claims on HMOs (Houses of Multiple Occupancy) plus also highlighted the ability of HMRC to make enquiries into claims beyond the normal time limits.

11 Nov 2019

Written by: Clive Curd

Archive

Latest News

Veritas Blog for Harold Sharp Proptech

09 Dec 2019

As part of our working relationship with Harold Sharp accountants we were recently requested to add an article on the new Structures and Buildings allowances for their Proptech initiative.

Guidance on Structures & Buildings Allowance

09 Dec 2019

It has taken HMRC a year since the Structure and Buildings Allowance (SBA) was announced in the November 2018 budget to publish the detailed guidance on its new tax give away for capital expenditure on all non-residential buildings.

New Case Law – HMOs and HMRC Enquiry Times

11 Nov 2019

Another recent Case law ruling, Hora Tevfik v HMRC (2019) recently dismissed Capital Allowances claims on HMOs (Houses of Multiple Occupancy) plus also highlighted the ability of HMRC to make enquiries into claims beyond the normal time limits.

Veritas Publish SBA Article in Taxation magazine

10 Jul 2019

In the latest edition of Taxation Magazine Veritas Director Clive Curd takes a practical look at how the new Structures and Buildings Allowances legislation works.

Success at the National Surveyor’s 7’s Rugby Tournament

17 May 2019

Congratulations to Jack Hooper of Veritas and his teammates from the Thirdway Barbarians team who won the recent National Surveyors 7's rugby tournament at Richmond

Veritas Become Member Firm of PAI Commercial Property Network

07 May 2019

Veritas are pleased to announce they have become a Member Firm of PAI Commercial Property Network, the UK's largest connected network of commercial surveying practices.

SBA Draft legislation Out

15 Apr 2019

HM Revenue & Customs have issued the draft legislation for the new Structures and Buildings Allowances legislation and have requested comments by April 24th before final drafting ready for issue later this year. Veritas Advisory will be responding.

New Case Law – £226m in Dispute!

05 Apr 2019

The First Tier Tribunal considered the capital allowance claim of a hydroelectric power generation scheme at Glendoe, in Scotland; the total construction cost was approximately £300m with HMRC accepting £34 million, leaving £226 million in dispute.

Veritas Advisory Appointed Capital Allowances Supplier to Carehome.co.uk

08 Mar 2019

Veritas are now a listed supplier to Carehome.co.uk as Capital Allowances advisor to maximise the tax reliefs on acquisitions, refurbishment and extensions of care homes.

It was announced in the budget that the Annual Investment Allowance would increase from its current £200,000 level to £1,000,000 from 1st January 2019.  This gives the majority of businesses the ability to receive 100% tax relief in the year of expenditure for all qualifying plant and machinery expenditure over the next two years.  Here we set out the main ways that a business can utilise this valuable tax relief.

All businesses including non-resident landlords can claim the Annual Investment Allowance (AIA), with the exception of mixed partnerships being specifically excluded.  In our experience, this valuable form of tax relief can often be overlooked when completing the relevant tax returns and this can be due to a number of reasons.

Firstly, the expenditure on which the AIA can be claimed on can be unclear, both in terms of the eligibility and also in terms of having sufficient details to determine the qualifying expenditure in order to make a claim.  In terms of what items of expenditure can be claimed upon, it is any expenditure which qualifies for your normal Plant and Machinery Allowances.

For any direct purchases, this can be easier to identify, such as the buying of new IT equipment or trade related machinery.  Where the complexities often arise is in identifying qualifying expenditure which is part of a larger capital project such as a building refurbishment, extension or new build.  In this case the expenditure is often priced by the builder/developer and can often be limited in the level of cost breakdowns.

Even where the costs are not sufficiently broken down, there is still the ability to make a claim for AIA, but will often require employing a Capital Allowances specialist, such as Veritas Advisory who as Chartered Surveyors are able to calculate their own cost breakdown to a level which would stand up to HMRC scrutiny.

The other area of expenditure which can be overlooked is on second hand acquisitions, which is a less obvious form of qualifying expenditure and again will require the services of a specialist to value the qualifying expenditure.  When it comes to second hand acquisitions of property, there is a legal mechanism, applicable in most instances, by which the value of the inherent Capital Allowances is passed across via a s198 election, and which must be in place within 2 years of completion.

Often the question of Capital Allowances is over looked, with the purchaser missing out altogether and so it is critical to ensure that the contractual position is robust, binding the Seller to agree to pass over the unclaimed Capital Allowances.

Finally, the AIA is as the name suggests an annual allowance and so where projects span a number of tax periods, the claiming of the AIA can be overlooked in the earlier periods of expenditure.  Even if the project is uncompleted at the time of the tax return submission, the AIA can still be claimed on qualifying Capital Allowances incurred at that point as part of an interim claim submission.