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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.

The capital allowance legislation was significantly changed in 2014 with the introduction of s187A and B of the Capital Allowances Act (CAA) 2001 to provide a greater emphasis on the buyer to establish their entitlement to claim and if these new requirements are not met, then the capital allowances value is nil.  The consequence of this change has led to the taxpayer forgoing a great amount of tax relief.

With the number of possible scenarios, this article is intended only to highlight some of key considerations and therefore each scenario has to be considered on its own merits with no one size fits all solution.

S187A and B applies where the seller is subject to the UK tax system, irrespective if they actually are in a tax paying position.  This legislation ultimately asks the purchaser to identify any unclaimed capital allowances expenditure and to then agree to the “fixed value” requirement, which is to enter into an election under s198 of CAA 2001 and satisfy the “pooling requirement”, which is simply for the seller to recognise that agreed value in the next tax return.  If either of these requirements are not met, the capital allowances are deemed to be nil.

If you are buying from a non-tax paying entity, so a UK pension, registered charity or government body, then as they are not within the charge to tax, s187A and B does not fully apply. Instead a written statement of no claim is all that is required, which will then give entitlement to claim on the sellers “new” expenditure.  Furthermore, you can look back at past owners’ expenditure to establish whether there are any further claims which have not been made. Without a written statement the purchasers value is nil.

It is therefore vital that as part of the due diligence buying process that a capital allowances specialist be consulted so as to establish what the appropriate contract position should be.  If left unchecked and the contract is either left silent or, worse still, a £2.00 s198 election agreed, then it is likely that a capital allowances benefit will have been lost.  The replies to CPSEs should not be taken at face value, as the seller will often not want to face further scrutiny on the matter and so the onus is on the buyer to have someone to research the claim position and to challenge the initial replies given.

When buying from a seller who could have claimed, then the passing across of any unclaimed allowances is a negotiation point.  Often if a property has undergone a recent refurbishment, then that claim will not have been processed and it is for the buyer to secure those allowances, with the quantification exercise to be undertaken by a capital allowances specialist and paid for by the buyer.

In a market where tax is becoming an ever increasing cost to both businesses and on investment return, clients will and should be paying greater attention to securing the best deal for capital allowances as part of the deal’s due diligence process.  Capital Allowances are a valuable asset and should be part of the transaction negotiation.

Please contact one of the directors at Veritas Advisory to understand more about our capital allowances due diligence process.