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Capital Allowances Incentives to Increase?

In a positive move to encourage capital investment Rishi Sunak announced in the 2022 Spring Statement plans to expand the Capital Allowances legislation, subject to a consultation process, to be formally announced in the autumn budget and to take effect from April 2023

23 Mar 2022

Written by: David Gibson

Veritas Contribute to UKAA Publication – Improving Returns on Build to Rent

As a member of The UKAA, we were pleased to be invited to contribute to their latest buzz news issue, in which we explain how investors-operators of build to rent can improve investment returns by claiming capital allowances

02 Nov 2021

Written by: Nolan Masters

Veritas Confirmed New Member of UKAA – The Organisation for the UK Build to Rent

Veritas Advisory have now been confirmed as a new member of UKAA, the organisation for the UK Build to Rent sector. 

18 Oct 2021

Written by: David Gibson

Archive

 

Latest News

Capital Allowances Incentives to Increase?

23 Mar 2022

In a positive move to encourage capital investment Rishi Sunak announced in the 2022 Spring Statement plans to expand the Capital Allowances legislation, subject to a consultation process, to be formally announced in the autumn budget and to take effect from April 2023

Veritas Contribute to UKAA Publication – Improving Returns on Build to Rent

02 Nov 2021

As a member of The UKAA, we were pleased to be invited to contribute to their latest buzz news issue, in which we explain how investors-operators of build to rent can improve investment returns by claiming capital allowances

Veritas Confirmed New Member of UKAA – The Organisation for the UK Build to Rent

18 Oct 2021

Veritas Advisory have now been confirmed as a new member of UKAA, the organisation for the UK Build to Rent sector. 

Veritas Supporting Charitable Causes

01 Oct 2021

We have chosen to support four charitable causes reflecting activities that are close to us and to people we know and would like to raise awareness of.

Using Artificial Intelligence for Capital Allowances

27 Sep 2021

Can Artificial Intelligence help claim capital allowances? In addition to preparing detailed claim reports for clients, Veritas Advisory, in partnership with Brunel University and Innovate UK, are applying technology to solve some of the issues, the main one being how to use data efficiently and correctly.

New Case Law – Potato Store is Plant

07 Aug 2021

JRO Griffiths Limited v The Commissioners for Her Majesty’s Revenue and Customs [2021] UKFTT 257 (TC) resulted in the taxpayer winning their appeal in whether or not a warehouse used to store potatoes for a crisp manufacturer is plant.  The taxpayer won on 2 counts.

Estates Gazette Article – Capitalise on Allowances

20 Jul 2021

Veritas Advisory Director Nolan Masters, together with Alex Barnes a Partner at BDB Pitmans LLP, have published an article in Estates Gazette on how capital allowances claims can mitigate the increasing cost of tax on property investment.

New Case Law – Satellites

16 Jul 2021

A Capital Allowances case Inmarsat Global Limited and The Commissioners for Her Majesty’s Revenue and Customs UT/2019/0167 V), has been refused by the Upper Tier Tribunal, in relation to the launch of satellites.

Taxation Magazine Article – The New Super Deduction

04 Jul 2021

In the June edition of Taxation Magazine Veritas Advisory Director Nolan Masters set out how the new super deduction and special rate allowances will affect property owners, occupiers and investors. Click here to read the article in full

With the announcement to provide further tax breaks on Authorised Contractual Schemes (ACS), there is now another tax transparent vehicle on the block for UK real estate funds to consider.  Veritas Advisory, the only Capital Allowances experts to have advised on a property based ACS fund, consider the benefits.

The introduction of a further tax transparent vehicle, was a move by George Osbourne and HM Revenue & Customs to present a carrot to UK property funds, to bring their investments back onshore.  This was despite the fact that for many years previous investors already had two alternative tax transparent vehicles to opt for, namely the property authorised investment trust (PAIF) and real estate investment trust (REIT).   So what does the ACS offer that these two vehicles do not.

The ACS provides an option for both fund managers and institutions wishing to operate a UK platform as an alternative to authorised unit trusts and open ended investment companies.  There are two forms of an ACS, partnership or co-ownership, with the latter being the more popular as it is easier to administrate and can be set up as an umbrella for multiple sub-funds.  The ACS is designed to compete directly with offshore vehicles by offering equal tax advantages.

Tax transparent vehicles have traditionally been aimed at pension funds enabling them to withhold tax but there is a wider list of benefits.

Benefits of ACS

Up until the last budget, the two biggest hurdles facing those funds considering a move to ACS was SDLT and capital allowances.  Subject to Royal Assent, expected in July 2016, seeding relief will be given for co-ownership ACS vehicles and no SDLT will be payable on the issue, transfer or surrender of units in a co-ownership ACS from the same date.  As with a PAIF the fund is open-ended but there are no investment restrictions in the level of property to be held and so can be formed of multiple unit classes.

One of the main draws in converting is that it will enable the fund manager to pool and administer multiple funds under the one tax transparent umbrella.  This is particularly attractive to enable fund managers to head off regulatory changes and increase administration cost pressures.  Whilst there is no doubt that such a move comes with some initial pain, the long term gains may for some, make it a worthwhile option.