advising large property investment companies, family owned residential developers, landed estates and a variety of property professionals
haysmacintyre acts for many real estate companies, ranging from owner managed businesses to institutionally backed organisations. Our real estate team provides practical solutions to client problems and with experience of working on deals from £1 to £1 billion are able to overcome clients’ challenges.
Our advice is provided in a timely and straightforward manner and, with no two businesses being identical, clients are treated as individuals, whether well established entities or just starting out on an entrepreneurial journey. We focus on our clients’ objectives, whether personal, corporate or a combination of the two. Our intention is to gain your confidence in order that we can be your trusted business advisor.
Our services to the real estate sector cover both advisory and compliance services and include:
Tax is particularly important in the real estate sector where a wider range of possible taxes/expense is faced. At haysmacintyre we have a team of tax specialists who understand this sector and provide pragmatic, added value advice.
Other issues of particular interest to the sector where haysmacintyre can assist are:
Real Estate Investment Trusts (REITs)
Capital allowances on second-hand fixtures
The 2011 Autumn Statement heralded the first major changes to the UK REIT regime that first became operative on 1 January 2007 with the proposed changes being enacted as part of the Finance Act 2012. These changes saw:
- The abolition of the 2% entry charge on entering the REIT regime;
- The relaxation of the need for a REIT to be listed on a recognised stock exchange thereby allowing companies to be listed on AIM and PLUS, as well as their foreign equivalents, to become REITS;
- The diverse ownership rules requiring a REIT is not controlled by a small number of individuals being relaxed for institutional investors; and
- The introduction of a three year window from the company to meet the non-close company requirement.
Combining the Finance Act 2012 changes with the existing REIT regime, whereby REITs are exempt from UK corporation tax on rental profits and capital gains from their property rental premises, has created a possible structure which is of interest to start ups, family owned property businesses and property businesses seeking funding on the public markets.
For a discussion as to how your property business might benefit from REIT status please contact Nick Jordan.
Standard and enhanced tax reliefs
In the past when buying property, attention was not always given to the capital allowance history of fixtures, particularly those that were integral to the building. However, changes in legislation in the Finance Act 2012 now mean this is no longer an option. The new rules are designed, inter alia, to prevent doubling up of claims on the same assets.
When purchasing a property it is important to ensure that the buyer and seller agree the disposal value for fixtures within two years of the acquisition by the purchaser. In the absence of an agreed amount either party can apply to the First Tier Tribunal for a determination. Furthermore, with effect from April 2014, where the seller was entitled to claim allowances the availability of allowances on fixtures to the purchaser will be conditional upon the original acquirer having made a claim for allowances. If the seller has failed, for whatever reason, not to claim allowances the purchaser will be prevented from making any future claim.
At haysmacintyre we can help you in a number of ways. We can work with you to ensure the relevant claims have been made to maximize your disposal values and minimize the net tax cost of acquiring fixtures through ensuring that legal agreements contain appropriate protection clauses.
This is a complex area where professional advice is required prior to undertaking any transaction.
For more details of how haysmacintyre can help you please contact Neil Simpson.
Although tax allowances have generally fallen over the last few years there are still a number of valuable reliefs available in the real estate sector. For instance, construction and development work frequently entails dealing with contaminated land where a 150% relief may be available. Thus £1,000 spent on remediation work and charged to your profit and loss account will be worth a £1,500 expense deduction for tax purposes. Energy and water efficient technology incorporated into buildings may qualify for 100% capital allowances thereby gaining you immediate relief for your capital expenditure.
Buildings are rarely alike and therefore we adopt an individual approach to advising our real estate clients. At haysmacintyre we have an experienced team who focus on real estate clients and who understand the vagaries and idiosyncrasies of the sector. We can help you identify the reliefs available to your business and, where appropriate, we will work with property surveyors to identify the costs involved in the optimization of claims.
For a discussion as to how haysmacintyre can help your real estate business please contact Ian Daniels.
If you receive rental income from property interests in the UK you will be liable to UK tax on this income and to report it to HMRC. If this is a new source of income, as with any new source of income, this needs to be notified to HMRC before 5 October following the end of the tax year in which it first arises.
If you are a UK resident you will need to complete the Land & Property pages as part of your self assessment return. If you are a non resident for UK tax purposes you will normally receive your rental income net of a 20% deduction for tax. Credit for this tax will be given when the individual completes their self assessment return. Non-resident landlords can apply to HMRC to have their rental income paid gross by completing the relevant forms.
Whether you are resident or non resident, haysmacintyre can assist you as a landlord in complying with your self assessment requirements. We can also assist you in ensuring that you obtain relief for your property expenses.
If you are non resident, haysmacintyre can help you by completing the necessary forms to have your rental income paid gross and, if necessary, bringing your UK tax affairs up to date in order that you can be eligible to have the rental income paid gross.
For more information please contact Neil Simpson.
Real estate groups frequently feature a number of companies in the group for valid structuring purposes. However such structures bring with them the attendant need for compliance such as completing the statutory accounts and taxation computations. Since 2011 company tax returns and computations have needed to be in inline eXtensible Business Language format, or iXBRL for short, with certain information “tagged” so that it can be identified electronically.
Whilst most accounts preparation software packages are now able to produce the necessary iXBRL outputs, for companies that continue to produce their accounts in Word conversion into an iXBRL format will be required.
haysmacintyre can help you in two ways. Firstly we can convert your Word accounts into iXBRL format and tag the necessary data. Alternatively we can prepare the financial statements in iXBRL format for you in our accounts preparation software and solve the conversion problem for you. Whilst Companies House has said it will not mandate the filing of iXBRL accounts it has begun to accept the electronic filing of certain types of accounts.
For more information please contact Ian Daniels.
Through our international global alliance network, MSI, we have access to over 250 member firms in over 105 countries who are ready to support you in accounting, tax and legal matters.
To find out how haysmacintyre can help your real estate business please contact Ian Daniels or David Riley .