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Veritas Article in Property Week Magazine

As part of the Property Week magazine Covid-19 support hub Veritas Advisory director Nolan Masters highlights how using Capital Allowances can help generate significant tax savings and ease cash flow problems.

08 Jun 2020

Written by: Nolan Masters

Veritas Article in Taxation Magazine

Veritas have published an article in Taxation Magazine setting out how to boost cash flow by identifying property tax reliefs. Key points addressed in the article include reviewing historic expenditure where allowances haven't been fully claimed, using capital allowances to mitigate future capital gains, the window of opportunity to claim and the benefit of utilising the annual investment allowance of £1,000,000.

03 Jun 2020

Written by: Nolan Masters

Capital Allowances Guide for PAI Member Firms

Veritas Advisory director Clive Curd has prepared a Capital Allowances guide for all member firms of the Independent Commercial Property Agents Network (PAI) for which Veritas Advisory are the recommended Capital Allowances advisor.

01 Jun 2020

Written by: Clive Curd

Archive

Latest News

Veritas Article in Property Week Magazine

08 Jun 2020

As part of the Property Week magazine Covid-19 support hub Veritas Advisory director Nolan Masters highlights how using Capital Allowances can help generate significant tax savings and ease cash flow problems.

Veritas Article in Taxation Magazine

03 Jun 2020

Veritas have published an article in Taxation Magazine setting out how to boost cash flow by identifying property tax reliefs. Key points addressed in the article include reviewing historic expenditure where allowances haven't been fully claimed, using capital allowances to mitigate future capital gains, the window of opportunity to claim and the benefit of utilising the annual investment allowance of £1,000,000.

Capital Allowances Guide for PAI Member Firms

01 Jun 2020

Veritas Advisory director Clive Curd has prepared a Capital Allowances guide for all member firms of the Independent Commercial Property Agents Network (PAI) for which Veritas Advisory are the recommended Capital Allowances advisor.

4 Simple Steps to Reduce Income Tax

27 May 2020

The practical aspects of partnerships and individuals claiming on historic expenditure, if there are any time restrictions to submit a claim and how to overcome potential barriers such as lack of supporting detailed cost information are often unclear. We set out 4 simple steps to follow in order to realise these tax savings

4 Simple Steps to Reduce Corporation Tax

27 May 2020

Companies are often unclear on the practical aspects of claiming against historic expenditure, if there are any time restrictions to submit a claim and how to overcome potential barriers such as lack of supporting detailed cost information. We set out 4 simple steps to follow in order to realise these tax savings

Veritas Support Dog Rescue Charity

27 May 2020

Veritas Advisory have chosen to be a supporter of Candy Cane Rescue, a charity rescuing exported greyhounds and other dogs from the meat markets in China, and for which Veritas Director David Gibson is a Trustee.

Property Agents Independent (PAI) Network Blog

15 May 2020

During the unprecedented pandemic we shared our views to the Property Agents Independent (PAI) network on how to aid businesses by enhancing cash reserves through the claiming of capital allowances on unclaimed historic property expenditure.

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.

In an environment of squeezed returns, the amount of tax being paid by businesses and investors is given increased scrutiny.  One of the only ways to receive tax relief on property expenditure is via Capital Allowances and often over looked still, is the ability to attract the relief on second hand purchases.  Here we provide a simple reminder of what to do when buying a property.

The ability to claim Capital Allowances on second hand acquisitions is often either ignored by the client and their advisors or perceived too much hassle to warrant further investigation.  Typically, any property transaction will have a level of unclaimed Capital Allowances which are up for grabs.  The amount is down to the type, age and specification of the property in question and so there is no one answer fits all, rather each transaction has to be viewed in isolation.  That said, a specialist Capital Allowances advisor will from minimal detail be able to provide a client, once they have gone under offer, an indication of the level of benefit at stake.

The Seller often will not make the Buyer aware of any unclaimed allowances and so the onus is often on the Buyer to drive the conversation.  Here are our top 5 points to ensure you address Capital Allowances and where applicable, provide future tax relief to increase investment returns or drive profits up.

  1. Check the Heads of Terms

The heads of terms may highlight to a Buyer the availability of unclaimed Capital Allowances.  Marketing of these allowances as a negotiation tool will often arise where the Seller has incurred expenditure recently, holds as trading stock, cannot use the allowances post sale or cannot claim.  However, often the Buyer will be entitled to allowances the Seller is not so  there will still be a need to understand the validity of the value of Capital Allowances and whether any contractual provisions are required.

  1. Don’t be put off by N/A or nothing to claim in the replies to enquiries

This is a common position adopted by Seller’s lawyers, often because they are not sure of the position.  Since the rule change where the unclaimed Capital Allowances must be quantified and elected over, the onus is now on the Purchaser to push back and make their own enquiries as to the availability of Capital Allowances.  For example, if the Seller was the first buyer after April 2008 then they would have entitlement to claim Integral Features but would require that value to be calculated and elected across for the Buyer to take the onward benefit.

  1. Get an understanding of what benefit is at stake

Often Capital Allowances, if addressed, are raised at the last hour and so there can be a tendency to drop them so as to not risk the deal stalling.  We have often seen extended exchanges when the level of benefit is immaterial and so getting a third party view as to what the position is can be invaluable and if immaterial, it ticks the box and removes the risk of any unnecessary delays.

  1. Contract is king

With the change in legislation, under s187A of the Capital Allowances Act it now requires that for the Buyer to claim any historic unclaimed allowances, there must be an election to pass that benefit across within 2 years of completion.  Furthermore, the Seller must satisfy the pooling requirement, which simply means recognising the agreed value in their next tax return.  Contrary to some beliefs, there should be no tax impact on the Seller.

  1. Buy yourself some time

Most deals are time pressured and Capital Allowances can be seen as an annoyance for the Seller to deal with, so it can often be a better approach to put a provision in the sale contract.  This should agree to pass over the unclaimed Capital Allowances, to be calculated by the Buyers Capital Allowance advisors and elected within a prescribed time limit; there is no legal requirement to agree the figures prior to completion as long as the contract wording is sufficient to facilitate a claim post transfer.  This removes those pressure points but gives the Buyer the ability to revisit post completion, with the knowledge of the Sellers future cooperation.