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It’s Not Too Late For Some – Further Claim Opportunities

If you are reading this and thinking it’s too late we already completed on a deal there may still be some available capital allowance claims which can be pursued, even if the contract is silent or an election for £2.00 has been signed up to. Here we set out further claim opportunities, irrespective of contract.

23 Jan 2020

Written by: Nolan Masters

Don’t Look Back In Anger – How To Avoid Missing Out

Whilst there are capital allowance claims that can still be pursued irrespective of the adopted contract position, missing out on valuable tax relief is likely unless key capital allowance due diligence checks and contract provisions are set out before exchange. Here we set out some of the key tasks to avoid losing out.

23 Jan 2020

Written by: Nolan Masters

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

Archive

Latest News

It’s Not Too Late For Some – Further Claim Opportunities

23 Jan 2020

If you are reading this and thinking it’s too late we already completed on a deal there may still be some available capital allowance claims which can be pursued, even if the contract is silent or an election for £2.00 has been signed up to. Here we set out further claim opportunities, irrespective of contract.

Don’t Look Back In Anger – How To Avoid Missing Out

23 Jan 2020

Whilst there are capital allowance claims that can still be pursued irrespective of the adopted contract position, missing out on valuable tax relief is likely unless key capital allowance due diligence checks and contract provisions are set out before exchange. Here we set out some of the key tasks to avoid losing out.

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.

The capital allowance legislation was significantly changed in 2014 with the introduction of s187A and B of the Capital Allowances Act (CAA) 2001 to provide a greater emphasis on the buyer to establish their entitlement to claim and if these new requirements are not met, then the capital allowances value is nil.  The consequence of this change has led to the taxpayer forgoing a great amount of tax relief.

With the number of possible scenarios, this article is intended only to highlight some of key considerations and therefore each scenario has to be considered on its own merits with no one size fits all solution.

S187A and B applies where the seller is subject to the UK tax system, irrespective if they actually are in a tax paying position.  This legislation ultimately asks the purchaser to identify any unclaimed capital allowances expenditure and to then agree to the “fixed value” requirement, which is to enter into an election under s198 of CAA 2001 and satisfy the “pooling requirement”, which is simply for the seller to recognise that agreed value in the next tax return.  If either of these requirements are not met, the capital allowances are deemed to be nil.

If you are buying from a non-tax paying entity, so a UK pension, registered charity or government body, then as they are not within the charge to tax, s187A and B does not fully apply. Instead a written statement of no claim is all that is required, which will then give entitlement to claim on the sellers “new” expenditure.  Furthermore, you can look back at past owners’ expenditure to establish whether there are any further claims which have not been made. Without a written statement the purchasers value is nil.

It is therefore vital that as part of the due diligence buying process that a capital allowances specialist be consulted so as to establish what the appropriate contract position should be.  If left unchecked and the contract is either left silent or, worse still, a £2.00 s198 election agreed, then it is likely that a capital allowances benefit will have been lost.  The replies to CPSEs should not be taken at face value, as the seller will often not want to face further scrutiny on the matter and so the onus is on the buyer to have someone to research the claim position and to challenge the initial replies given.

When buying from a seller who could have claimed, then the passing across of any unclaimed allowances is a negotiation point.  Often if a property has undergone a recent refurbishment, then that claim will not have been processed and it is for the buyer to secure those allowances, with the quantification exercise to be undertaken by a capital allowances specialist and paid for by the buyer.

In a market where tax is becoming an ever increasing cost to both businesses and on investment return, clients will and should be paying greater attention to securing the best deal for capital allowances as part of the deal’s due diligence process.  Capital Allowances are a valuable asset and should be part of the transaction negotiation.

Please contact one of the directors at Veritas Advisory to understand more about our capital allowances due diligence process.