Insights
Seminars & Events
News

Latest Insights

Veritas Open Liverpool & Manchester Offices

We are pleased to announce the opening of two offices in Liverpool and Manchester to strengthen our existing offering and provide a local presence to both existing and new clients.

18 Sep 2020

Written by: David Gibson

Enhance SPV Tax Relief With Capital Allowances

When an SPV sells it's sole property asset significant tax relief can be realised on sale using Capital Allowances. Normally they are written down at 18% or 6% on a reducing balance basis but on cessation of trade a balancing allowance may be due, accelerating the timing of the tax savings, as per our example in this article.

07 Sep 2020

Written by: Clive Curd

Use Capital Allowances To Reduce Your CGT & Taxable Income

Until recently many offshore investors did not claim capital allowances due to having little or no tax liability. However, as offshore investors are now within the UK corporation tax legislation and pay tax on their capital gain, consideration of Capital Allowances to reduce their tax bill should always be made.

07 Sep 2020

Written by: Clive Curd

Archive

Latest News

Veritas Open Liverpool & Manchester Offices

18 Sep 2020

We are pleased to announce the opening of two offices in Liverpool and Manchester to strengthen our existing offering and provide a local presence to both existing and new clients.

Enhance SPV Tax Relief With Capital Allowances

07 Sep 2020

When an SPV sells it's sole property asset significant tax relief can be realised on sale using Capital Allowances. Normally they are written down at 18% or 6% on a reducing balance basis but on cessation of trade a balancing allowance may be due, accelerating the timing of the tax savings, as per our example in this article.

Use Capital Allowances To Reduce Your CGT & Taxable Income

07 Sep 2020

Until recently many offshore investors did not claim capital allowances due to having little or no tax liability. However, as offshore investors are now within the UK corporation tax legislation and pay tax on their capital gain, consideration of Capital Allowances to reduce their tax bill should always be made.

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.

Whilst partnerships and individuals can as part of a covid-19 measure, defer income tax payments, the liability to pay the tax remains the same; companies however do not benefit from this with no delay in the timing of corporation tax payments to be made.

Capital Allowances related to historic expenditure offers significant tax relief when businesses need it most and so we have set out 4 simple steps to assist companies to identify valuable cash savings.

Many property owners and occupiers have not maximised Capital Allowances claims on historic expenditure due to being unaware of the nuances of the legislation, claiming only on items not integral to the building or perceiving there are no allowances to be claimed.

No Time Restriction To Claim on Historic Expenditure

As long as the property or fixtures within a property are still retained it is possible to submit a Capital Allowances claim now on historic expenditure incurred going back as far as you can, with Veritas Advisory having advised on claims going back 30 years ago; the tax savings associated with these historic claims will be realised in the tax returns that remain open, as set out below.

A company, with a 30 September tax year end date, who acquired a property and then carried out a subsequent refurbishment in 1999, would be entitled to submit a claim on both amounts of expenditure and amend both tax returns for years ending 30 September 2018 and 2019.

In addition, as those allowances are written down over a number of years, the tax saving benefit would be accrued over both the current and future tax periods and for any unrelieved allowances they can be used to offset against future capital gains tax on sale.

The tax savings for companies equates to 19% of all qualifying expenditure; a £1,000,000 claim for Capital allowances will therefore give rise to £190,000 in cash savings, realised across the different tax periods.

For expenditure incurred since 1 January 2019 it is possible to achieve the full £190,000 tax savings in the tax period in which the money was incurred by utilising the annual investment allowance.

Examples of Unclaimed Capital Allowances

Typically nuances of the legislation commonly overlooked include opportunities to claim where properties are acquired with vacant space, properties occupied with non-tax paying tenants, capital contributions to tenants, to simply not claiming as not profit making at the time or for acquisitions, the Sellers stating that no Capital Allowances were available to Buyers.

A Seller having claimed all the allowances they were entitled to will not necessarily preclude a claim for a Buyer, even where a £2 s198 election may be agreed, because the entitlement to claim for the Buyer can be different to that of the Seller.

Overcoming Perceived Barriers to Claim

A perceived barrier to submitting claims on historic expenditure is a lack of detailed records supporting costs incurred on historic developments, refurbishments or extensions, but this is easily overcome.

There is no requirement to retain detailed cost expenditure; HMRC will accept a claim which is built up from first principles using measurement and cost estimating techniques, similar to a purchase claim, with any claim being based on the Capital Allowances legislation applicable at the date of the expenditure.

The only requirement is evidence of the expenditure having been incurred and guidance provided as to the nature of the works carried out.

4 Simple Steps to Follow

To take advantage of the unclaimed allowances related to the historic expenditure we recommend the following steps:

  1. Create schedule of existing owned or let properties
  2. List dates of capital expenditure incurred for each property, including purchase date, dates of refurbishments, fit outs, capital contributions, developments or extensions
  3. For all acquisitions add the purchase price and land registry title number. For capex expenditure add approximate expenditure if actual expenditure not known
  4. Request a free initial estimate of potential allowances and tax savings