Property investors

The ideal business structure of an investment business depends on its size and your ambitions for the property contained within the portfolio.  

Our knowledge of the sector will ensure that we can help you look at the pros and cons of various structures and determine the best fit for you and your business.

We can assist in redefining group structures to mitigate risk or facilitate funding (e.g, by using SPVs), or to provide clear lines of reporting and potential tax savings.

Additionally, where outside investors are concerned we can help you to identify risks associated with the regulations of such activities and recommend specialists in Financial Services and the FCA, to take you through the compliance aspects of that.  

Finding financing has become notoriously difficult for the property sector.

We have established relationships with the lenders who are best placed, and most supportive, to the sector and have experience of helping to achieve mutually satisfying outcomes for all concerned.

In addition to bank finance, we can also provide advice and introductions for other available options for raising finance for your business.

By understanding your goals and the nature of the investment portfolio, we can assist you to plan so as to achieve tax efficiency in your operations.

We have an award winning tax team who can advise in relation to a myriad of taxes, which include:

•        Annual Tax on Enveloped Dwellings (ATED)
•        Capital Allowances claims
•        Capital Gains Tax
•        Corporation Tax / Income Tax
•        Inheritance Tax
•        Land Remediation
•        Stamp Duty Land Tax (SDLT)
•        VAT

The operation of VAT for Investors is highly complex as VAT on supplies can be exempt or standard rated depending on whether the property has been “opted to tax”.  Sometimes a combination of rates will apply across a portfolio leading to partial exemption calculations being required.

On acquisition or sale of property, additional issues arise depending upon whether the property is opted to tax or not, and whether there is a Transfer of Going Concern due to an ongoing tenancy at the time of the transaction.  In some cases the incorrect treatment can lead to a funding deficit if VAT is payable, and a real additional SDLT cost.  In extreme cases, it can lead to an inability to recover VAT paid, 

The consequences of not being adequately advised on VAT can be severe, so  you should work with specialists who are familiar with the industry and are able to help your business not only stay within the rules, but also to maximise the VAT efficiency of your activities.

We can help with:

• Pre-tender or acquisition advice on the VAT implications of a proposed property,.
•        Advising on where an option to tax is appropriate and assisting in that process
• Advising on whether the property constitutes a TOGC
• Advising on the VAT position on resale
• Advising on the VAT position on change of use
• Advising on the partial exemption
• VAT registration of SPVs
• Advising on most appropriate structures to maximise VAT efficiency.
• Supporting businesses which are subject to VAT enquiries and disputes.

CIS is far reaching and covers many activities that are not immediately obvious, for example, investors who develop property for future investment purposes, may be classified as deemed contractors and thus fall within the scope of CIS so must register and apply the scheme rules to all relevant payments.

We can help by:

• Appraising you of the CIS rules and advising whether your activities are within scope
• Advising on whether certain contracts can be split
• Assisting you to establish robust procedures to operate CIS correctly and avoid penalties
• Assisting generally with your business’ overall tax compliance to retain/obtain gross payment status

Supporting you in dealing with HMRC enquiries

Your accounts are important.

They are the measure by which financiers, investors and other stakeholders will form a view of your business performance.  So when we, as Chartered Accountants, ensure your statutory accounts meet the disclosure requirements of either UK GAAP or IFRS, we go just that bit further – we consider how we can, within the constraints of those accounting regulations, best display the true picture of your business.  

We have many years’ experience of auditing property investment businesses and are specialists in understanding and applying not only the accounting rules but also the funding requirements, banking covenant targets and other factors that would impact the ongoing success of your business. 

The benefits to our clients are

• A team who are conversant with the industry and specific rules for accounting for investment properties, for example the determination of whether refurbishment is capital expenditure or improvement
• An awareness of the funding, letting and valuation process.

We developed our online accounting service in order to be able to streamline the service we provide to our clients by eliminating unnecessary time spent on data transfer and enabling us to focus our time on getting straight to work on the data itself.

Since then of course, online access to bank accounts and instant communication has become a feature of the modern business. 

In addition to the improved efficiency (and lower costs) of the service we can provide, it also means that we have open communication with our clients and are able to provide real time answers.