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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

Stephen May v HMRC

This case centred on the ability, or otherwise, to claim a whole facility and involved a tax payer who designed and constructed a grain silo, the description of which does appear to be determined by which side you are on, but described as a “building” by HMRC and a “facility” by the Tribunal, to be neutral.

The tax payer, whose occupation was that of a farmer, growing and harvesting grain, commissioned a purpose made silo for storing grain for future sale. The storage process requires moisture removal, to specific levels, maintaining the quality of the grain to enable the grain to be sold, and where certain levels are met, at a higher price.

HMRC rejected 80% of the costs, with the evidence of an ex HMRC employee stating that internally HMRC thought there was merit to the claim, but that HMRC current practice was not to accept it.

Some may suggest that this is not a fair and equitable way to treat a tax payer, and that HMRC should not reject claims without reason, but consider the evidence and come to their own judgement. However, HMRC did note that it is up to the tax payer to demonstrate the case and relief that they are claiming.

The two key areas to this case surround the definition and meaning of a silo, and of “temporary use”. The building, for all intense and purpose, is a “barn / shed”, but upon further investigation, the tax payer demonstrated it has been specially constructed, including the walls being an extra thickness, as well as part movable, special floors, ventilation apparatus, and a complete building designed to remove moisture from the grain. This design was to meet the specific requirements of storing grain and keeping it in the condition required.

During the process, other cases were referred to in assisting to distinguish between what is a building or structure, and what is an apparatus of a trade. It was also agreed that the building had no other use, other than as a silo.

The other point refused by HMRC was that the building was not used on a temporary basis for storing the grain. However, the tax payer’s argument was accepted on the evidence that the grain was kept up to 9 months with a period of disuse whilst the grain store was prepared for the next harvest. It would be difficult to see why this is not a temporary storage, and it is a product for sale, and has a life span of maximum 10 months.

As with all cases for claiming buildings and structures, the Directors of Veritas Advisory have successfully claimed numerous “facilities” for tax payers, with special attention to understanding a tax payers trade, the facility, case law and how to demonstrate and argue this with HMRC. We are not surprised by the fact that HMRC initial reaction is the dismiss the claim, before considering the evidence that the tax payer has disclosed, as we have had similar cases, which have then been accepted by HMRC.