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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.

Hora Tevfik v HMRC

Another recent case law on Capital Allowances highlighted HMRC’s position on two main points.

1. HMOs (Houses of Multiple Occupation) do not qualify for Capital Allowances
2. Insufficient supporting information for a claim can enable HMRC to raise an enquiry beyond the normal time limits.

1. HMOs do not qualify for Capital Allowances.

HMOs do not qualify, a long held view of ours since we were involved in the original HMRC briefing 66/01 and 45/10; it didn’t though stop a number of advisors pursuing claims on HMOs and which effectively gave rise to this latest ruling.

To clarify the position, a house which has been converted to bedsits, but has a ‘communal’ area of a kitchen, living room etc. such as an HMO, is still part of a dwelling house and therefore does not attract capital allowances. Blocks of flats however, with common areas such as basements, stairs and lifts do attract Capital Allowances, excepting the new Structural and Buildings allowances; yet another complication for taxpayers!

2. Insufficient Information to support a claim can enable HMRC to raise an enquiry

HMRC’s normal time limit for making an enquiry into a tax return that has been filed on time is one year from the filing deadline.

However, where there is insufficient information to determine the validity of a Capital Allowances claim, as there was in this case, HMRC has the power to make ‘discovery assessments’ to prevent loss of tax; this can be 4 years after the end of the relevant tax year, or where someone has deliberately not provided information, up to 20 years after the end of the relevant tax year.

Consequently, HMRC were able to raise an enquiry into the HMO claim made by Hora Tevfik even though the normal time limits had expired.

A common question we are asked by our clients is should we include your capital allowances claim report within the tax return? Our view has been yes, on this very basis that it is a valuation of tax allowances and that providing the report discloses sufficient detailed information to allow HMRC to make a reasonable judgement as to whether or not they make further investigations.

The case brought up several other interesting points, known already, but which are nevertheless useful to remember when preparing a claim:

1) that the burden of proof is on the taxpayer to establish the expenditure is qualifying
2) evidence of a property survey and specific identification of a plant and machinery can be used to substantiate any claim
3) using a professional advisor who provides a detailed report can provide added certainty to clients beyond the normal time limits for making an enquiry

Veritas Advisory Directors are recognised by HMRC and experienced across all property sectors including thousands of student accommodation and residential blocks with non-dwelling elements, using successful techniques that maximise the claims in accordance with the Capital Allowances legislation.