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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

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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.

It was announced in the budget that the Annual Investment Allowance would increase from its current £200,000 level to £1,000,000 from 1st January 2019.  This gives the majority of businesses the ability to receive 100% tax relief in the year of expenditure for all qualifying plant and machinery expenditure over the next two years.  Here we set out the main ways that a business can utilise this valuable tax relief.

All businesses including non-resident landlords can claim the Annual Investment Allowance (AIA), with the exception of mixed partnerships being specifically excluded.  In our experience, this valuable form of tax relief can often be overlooked when completing the relevant tax returns and this can be due to a number of reasons.

Firstly, the expenditure on which the AIA can be claimed on can be unclear, both in terms of the eligibility and also in terms of having sufficient details to determine the qualifying expenditure in order to make a claim.  In terms of what items of expenditure can be claimed upon, it is any expenditure which qualifies for your normal Plant and Machinery Allowances.

For any direct purchases, this can be easier to identify, such as the buying of new IT equipment or trade related machinery.  Where the complexities often arise is in identifying qualifying expenditure which is part of a larger capital project such as a building refurbishment, extension or new build.  In this case the expenditure is often priced by the builder/developer and can often be limited in the level of cost breakdowns.

Even where the costs are not sufficiently broken down, there is still the ability to make a claim for AIA, but will often require employing a Capital Allowances specialist, such as Veritas Advisory who as Chartered Surveyors are able to calculate their own cost breakdown to a level which would stand up to HMRC scrutiny.

The other area of expenditure which can be overlooked is on second hand acquisitions, which is a less obvious form of qualifying expenditure and again will require the services of a specialist to value the qualifying expenditure.  When it comes to second hand acquisitions of property, there is a legal mechanism, applicable in most instances, by which the value of the inherent Capital Allowances is passed across via a s198 election, and which must be in place within 2 years of completion.

Often the question of Capital Allowances is over looked, with the purchaser missing out altogether and so it is critical to ensure that the contractual position is robust, binding the Seller to agree to pass over the unclaimed Capital Allowances.

Finally, the AIA is as the name suggests an annual allowance and so where projects span a number of tax periods, the claiming of the AIA can be overlooked in the earlier periods of expenditure.  Even if the project is uncompleted at the time of the tax return submission, the AIA can still be claimed on qualifying Capital Allowances incurred at that point as part of an interim claim submission.