One hurdle troubling decision makers reviewing the possibility of switching to ACS is that of Capital Allowances. Within the ACS manual drafted by HM Revenue & Customs it is noticeable by its absence. One of the key aspects in which the ACS is structured is that it is the ACS investors who have the beneficial ownership of the underlying assets, whilst the legal title is held by the depositary of the fund. So it is at the unit holder level where any tax charge is applied and equally, Capital Allowances claimed. The difficulty however is that units can be traded on a daily basis and so the mechanism by which the Capital Allowances is calculated can be a complex one.
That said, Veritas Advisory are the only Capital Allowances advisor to have formulated and agreed an automated system to manage the Capital Allowances complexities to calculate the value of the Capital Allowances per individual unit holder, per day, per property, per fund whilst also able to accommodate new expenditure, acquisitions and disposals; it is likely this approach will form the framework going forwards.