Rider Levett Bucknall. Taxation Services Executive Summary. state of mind

Transcription

1 Rider Levett Bucknall Executive Summary state of mind

2 The Service Property tax relief - advice, claims and negotiations; Types of relief - land remediation relief, capital allowances and enhanced capital allowances; Projects - new builds, refurbishments, acquisitions and disposals; Sectors - all where Clients are subject to tax; Team - specialists drawn from Big 4 accountancy firms; Expertise - tax accounting and quantity surveying; Client benefits - maximise tax relief, improve cash flow, increase project viability; Fee basis - no win / no fee. Our Taxation Service is a specialist division that provides capital allowances and other tax planning advice for property transactions across all business sectors. The taxation services department is led by specialists drawn from the Big 4 accountancy firms with dual expertise and extensive experience in both tax accounting and quantity surveying. At Rider Levett Bucknall we understand how we can add value to your project by maximising the tax savings available. We have a proven track record of delivering robust claims and our relationship with HMRC means we can swiftly agree claims without the need for protracted negotiations. Contact: Jamie Rogers Partner Rider Levett Bucknall UK Limited 60 New Broad Street London EC2M 1JJ Tel: +44 (0) Fax: +44 (0) Mobile: +44 (0) [email protected] Page 1 of 9

3 Capital Allowances (CAs) Expenditure - plant and machinery, integral features, enhanced, land remediation and business premises; Sectors - all where Clients are subject to tax; Clients - investors, owner occupiers and in some cases developers; Transactions - new builds, refurbishments, acquisitions, disposals; Rate of relief - 10% to 100%; Tax reviews - immediate and significant gains achievable; Fee basis - no win / no fee. Capital Allowances Services for Construction Projects We believe that our success is a result of our ability to understand our client's requirements, adapt our services to meet the client's needs and work within defined parameters whilst at all times looking for further opportunities which may benefit the client currently and in the future. An outline of the services we provide our Clients includes: 1. Preliminary Tax Efficiency Design / Specification Report 2. Capital Allowances Survey - Initial involvement can increase the level of capital allowances available in a development by as much as 15%. This enables the Client to fully utilise the available tax relief within the period of investment. - Detailed property surveys allow comprehensive identification of all qualifying assets. On-site records and photographs provide documentary evidence to support our claims with HMRC. 3. Fully Disclosed Claims - Comprehensive and fully disclosed format and methodology recognised by HMRC, which obviates the need for common queries. 4. Construction Cost Information and Collation of Information 5. Final Claim and Negotiation with HMRC - Obtaining, or preparing, detailed cost information to substantiate and optimise the Client s capital allowances, as well as prepare a fully disclosed claim in a format accepted by HMRC. - Delays to a claim and any subsequent allowances caused by account and retention agreement delays can be alleviated by using our expertise to quickly finalise claims using reasonable estimates and achieve agreement with HMRC. - Our recognised fully disclosed claims reduce HMRC queries and eliminate the risk of a later discovery. Page 2 of 9

4 Capital Allowances Services for Acquisition Projects An outline of the services we provide our Clients includes: 1. Initial Entitlement Review - A comprehensive review of legal documentation and enquiries with the property vendors (and prior vendors if applicable) enables us to establish an initial entitlement to claim Capital Allowances for the Client. - We will determine whether there have been any prior claims, elections, or if there are any other potential restrictions, as well as the ownership of the fixtures, which could affect the Client s claim. 2. Capital Allowances Survey 3. Reconstruction Cost Estimates and Land Values - In order to optimise the Client s entitlement, a detailed onsite survey will be undertaken to obtain supportive records and photographic evidence. This will enable comprehensive identification of all qualifying assets which will assist in agreeing our claims with HMRC. - As a property acquisition includes a capital consideration for building, fixtures and land, a reconstruction valuation of these elements needs to be undertaken to establish the Client s capital allowances claim. - We are fully qualified to prepare reconstruction costs using our extensive knowledge, expertise and the latest pricing indices. We are also able to draw on the experience of our in-house qualified Chartered Quantity Surveyors. - In addition we are qualified in preparing detailed and fully supportive land values, using residual and comparable evidence where applicable, in accordance with the Valuation Office Agency s guidelines. 4. Fully Disclosed Claims - Our robust claims are prepared in a comprehensive and fully disclosed format, which is accepted by HMRC and obviates the need for common queries. 5. Negotiation with HMRC - The methodology used within our claims, as well as the fully disclosed format, reduces HMRC queries and eliminates the risk of a later discovery. Overage Capital Allowances for Acquisition Projects Overage Claim Entitlement - Legislation changes in April 2008 have enabled investors to prepare an overage claim on Integral Features, introduced with the 2008 Budget. Even on transactions where an election has been agreed, there may be entitlement to claim. - Therefore we will undertake a comprehensive review of legal documentation and any prior claims or elections to establish the Client s overage claim entitlement. Page 3 of 9

5 Enhanced Capital Allowances (ECAs) Expenditure - energy-saving and water conservation equipment, including lighting, boilers, refrigeration and rainwater harvesting; Sectors - all where Clients are subject to tax; Clients - investors, owner occupiers and in some cases developers; Transactions - new builds, refurbishments, acquisitions; Rate of relief - 100% first year tax saving; Tax reviews - immediate and significant gains achievable, strict qualifying criteria; Fee basis - no win / no fee. ECA Tax Planning Rider Levett Bucknall specialise in providing bespoke ECA Tax Planning services to suit the Client s needs in order to maximise First Year Tax Relief. An illustration of our ECA Tax Planning services includes: 1. Design Stage Reviews - Identify initial entitlement, undertake a detailed review and determine further opportunities to maximise ECAs. 2. Design Team and Contractor Liaison 3. ECA management and Audit - Quantify existing ECA entitlement and establish suitable potential ECA alternatives for consideration by the Client. - Verify that specified ECA technologies have been installed and monitor throughout procurement process. - Obtain auditable records for preparation of a fully disclosed ECA claim. 4. Fully disclosed claims - Comprehensive, fully disclosed format and methodology recognised by HMRC. - HMRC enquiries reduced, claims are agreed promptly and risk of re-opened claims minimised. Page 4 of 9

6 Land Remediation Relief (LRR) Expenditure - remediation of contaminated land and buildings; Sectors - all where Clients are subject to tax; Transactions - new and existing developments; Owner Occupier / Investor - rate of relief 150%; Developer - rate of relief 50%; Company loss making - tax credit (cash in hand) can be claimed; Tax reviews - immediate and significant gains achievable; Time limit for retrospective claims - up to 3 years; Fee basis - no win / no fee. Business Premises Renovation Allowances (BPRA) Expenditure - conversion and alterations on derelict and unused commercial property in assisted areas; Sectors - commercial sector where Clients are subject to tax; Transactions - existing developments unused for at least 1 year in assisted areas ; Owner Occupier / Investor - rate of relief 100%; Tax reviews - immediate and significant gains achievable; tax optimisation to avoid 7 year clawback Fee basis - no win / no fee. Page 5 of 9

7 Case Studies Capital Allowances 1) Student Accommodation Development, London 32m CAs: 10.7m by RLB Cash Saving: 3m 2) Hotel Development, Yorkshire CAs & HBA s: Cash Saving: 6.97m 1.99m by RLB 1.27m 3) Office Acquisition, City of London CAs: Cash Saving: 33.35m 7.6m by RLB 2.7m 4) Office Refurbishment, City of London CAs & Revenue: Cash Saving: 23.10m 20.45m by RLB 5.8m 5) Care Home Acquisition, Hertfordshire CAs: 3.08m 900k by RLB Cash Saving: 270k Page 6 of 9

8 Case Studies Enhanced Capital Allowances (ECAs) 1) Superstore Refurbishment, South West CA s: ECAs (incl in CA s total): 6.87m 4.70m 383k by RLB Additional First Year Cash Saving: 107k 2) Hotel & Office Development, City of London 25m CA s: ECAs (incl in CA s total): 11.04m 750k by RLB Additional First Year Cash Saving: 210k 3) Retail Distribution Centre, Midlands CA s: ECAs (incl in CA s total): Additional First Year Cash Saving: 62.5m 38.2m 8.6m by RLB 2.14m 4) Hotel & Spa Development, Essex CA s: ECAs (incl in CA s total): 13.2m 6.98m 2.8m by RLB Additional First Year Cash Saving: 784k Page 7 of 9

9 Case Studies Land Remediation Relief 1) Residential Developer, South East 308m LRR at 50%: Cash Saving: 21.04m by RLB 2.94m 2) New Business Park, South Yorkshire 25m LRR at 50%: 3.67m by RLB Cash Saving: 551k Nil identified by Client s tax advisers (Big 4) 3) Residential Development, Greater Manchester LRR at 50%: 9.3m 1.6m by RLB Extra Over Cash Saving: 165k 500k identified by Client s tax advisers 4) Demolition & remediation of a former Power Station, North East LRR at 50%: 7.5m 4.02m by RLB Cash Saving: 603k 5) Hotel & Spa Development, Essex LRR at 150%: 4.82m 912k by RLB Cash Saving: 383k Page 8 of 9

10 Other RLB Services Quantity Surveying/Cost Management Building Surveying Programme Management Project Monitoring Risk Development Appraisals Responsible Management M&E Quantity Surveying Project Management Project Process Mapping Technical Adviser Due Diligence Insurance Valuations Project Cost Benchmarking Carbon Assessors Dilapidations Whole Life Cost Experts Party Wall Energy Performance Building Quality Audits Project Tracking CDM Coordinator Asset Management Planning Regeneration and Grant Funding You can find further details on all of the above at our website Locations Rider Levett Bucknall operates from each of these locations: Page 9 of 9