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Veritas RICS Capital Allowances Seminar – Oct 19

Veritas RICS Capital Allowances Seminar Slides

09 Oct 2019

Written by: David Gibson

Veritas Publish SBA Article in Taxation magazine

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.

10 Jul 2019

Written by: David Gibson

SBA Draft legislation Out

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.

15 Apr 2019

Written by: Clive Curd

Archive

Latest News

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.

New Case Law – Claiming a ‘Facility’

04 Mar 2019

This case centred on the ability, or otherwise, to claim a whole facility and involved a tax payer who designed and constructed a grain silo, the description of which does appear to be determined by which side you are on, but described as a “building” by HMRC and a “facility” by the Tribunal, to be neutral.

Veritas Advisory Appointed Capital Allowances Supplier for Surrey Care Association

27 Feb 2019

Veritas Advisory have been appointed as the dedicated supplier for Surrey Care Association for Capital Allowances advice. 

Veritas Advisory a “Supporter Member” to Care England

25 Feb 2019

Veritas Advisory are pleased to announce we are working in partnership with Care England, the leading representative body for independent care services in England, to provide Capital Allowances advice to it's members.

Stephen May v HMRC

This case centred on the ability, or otherwise, to claim a whole facility and involved a tax payer who designed and constructed a grain silo, the description of which does appear to be determined by which side you are on, but described as a “building” by HMRC and a “facility” by the Tribunal, to be neutral.

The tax payer, whose occupation was that of a farmer, growing and harvesting grain, commissioned a purpose made silo for storing grain for future sale. The storage process requires moisture removal, to specific levels, maintaining the quality of the grain to enable the grain to be sold, and where certain levels are met, at a higher price.

HMRC rejected 80% of the costs, with the evidence of an ex HMRC employee stating that internally HMRC thought there was merit to the claim, but that HMRC current practice was not to accept it.

Some may suggest that this is not a fair and equitable way to treat a tax payer, and that HMRC should not reject claims without reason, but consider the evidence and come to their own judgement. However, HMRC did note that it is up to the tax payer to demonstrate the case and relief that they are claiming.

The two key areas to this case surround the definition and meaning of a silo, and of “temporary use”. The building, for all intense and purpose, is a “barn / shed”, but upon further investigation, the tax payer demonstrated it has been specially constructed, including the walls being an extra thickness, as well as part movable, special floors, ventilation apparatus, and a complete building designed to remove moisture from the grain. This design was to meet the specific requirements of storing grain and keeping it in the condition required.

During the process, other cases were referred to in assisting to distinguish between what is a building or structure, and what is an apparatus of a trade. It was also agreed that the building had no other use, other than as a silo.

The other point refused by HMRC was that the building was not used on a temporary basis for storing the grain. However, the tax payer’s argument was accepted on the evidence that the grain was kept up to 9 months with a period of disuse whilst the grain store was prepared for the next harvest. It would be difficult to see why this is not a temporary storage, and it is a product for sale, and has a life span of maximum 10 months.

As with all cases for claiming buildings and structures, the Directors of Veritas Advisory have successfully claimed numerous “facilities” for tax payers, with special attention to understanding a tax payers trade, the facility, case law and how to demonstrate and argue this with HMRC. We are not surprised by the fact that HMRC initial reaction is the dismiss the claim, before considering the evidence that the tax payer has disclosed, as we have had similar cases, which have then been accepted by HMRC.