Client case studies and examples
General business and accounting services
- We have increased the level of outsourcing work done on behalf of a number of Guernsey property developers. We also assist these clients with their accounting, VAT issues and management accounts.
Service Charge Audits
In addition to the routine annual certification of service charge accounts:
- We have assisted managing agents with reconciliations and year end adjustments on change of accounting software.
- We have investigated a managing agent on behalf of a landlord, specifically to ensure that they had adhered to the terms of their contract and that their accounting system was correctly recording service and non-service charge expenditure.
Corporate Finance
- We assisted a demolition client in the North West in their merger with a sole trader. This deal ensured an increased turnover for the company of approximately £4.5m.
- We acted as advisers to a residential plc issuing a public offer to raise £4m to invest in a portfolio of residential property in the London Docklands area. We were also appointed auditors for this project.
- We assisted a large private property group on their acquisition of Quoted Property Group. This increased the investment properties of the enlarged Group to approximately £160m.
Tax
- A client with a commercial site used primarily for their trade has reduced their trading activity over the past couple of years. They chose to develop the site and have let redundant buildings to third parties, thus reducing their reliance on the trading activities. No ‘option to tax’ has previously been required or been made.
About 4 years ago they erected a stand alone unit costing approximately £100,000. This was originally used in the business and the input VAT was recovered. Following the decision to reduce their trading activity the building has been let. As the building was not caught by the Capital Goods Scheme the client decided not to ‘opt to tax’ on this building.
Last year they erected a new unit which was attached to the aforementioned 4 year old unit, but without interconnecting doors. The unit was built with the intention of letting it. We submitted the option to tax on their behalf to cover the new unit only. Input VAT has been recovered in full and VAT is charged on the rent for the new unit. The nature of the unit is such that tenants will be VAT registered and can recover the VAT charged on the rents. - A public school client recently built a housing block for staff. The school is not VAT registered. The school contemplated managing the build itself; which would have required a claim under the self build regulations. Following our advice the whole build was contracted out. As a new build of residential accommodation, the contract was zero rated and the charge to VAT avoided.
- We recently claimed contaminator tax relief for a property developer client.
- We are experienced in maximising either plant and machinery or industrial building capital allowance claims on the purchase or 'fit outs' of property.
- We have structured property investment acquisitions and property construction to minimise the impact of UK taxation.
- We have successfully advised on financing of property acquisitions to maximise returns to investors
- We have advised clients on avoiding a balancing charge on the disposal of the freehold of an industrial building
- We have advised clients on whether their interest in the business qualified for 100% business property relief for IHT purposes when the main asset comprised property.
- We have advised cllients on the effect upon business and taper relief for CGT purposes of the sale and leaseback of premises.
- We have advised clients on the tax implications arising from the Landlord and Tenant Act 1987.
VAT work on behalf of clients
- We issued a Notice of Appeal against an asssesment of VAT on ground rent and service charges which had long applied to people living at Brighton Marina. HM Revenue & Customs (HMRC) argued they were holiday homes. As a result there was a complete turnaround by HMRC. Naturally, we obtained Costs.
- 200 flats created from 30 houses - conversion costs subject to VAT denying effective VAT-free disposal - argued equivalence to demolition and newbuild. Added several million pounds to profits of developer
- Whole street of houses divided into flats converted back to houses Plans slightly changed upon our advice changing the project from taxable to VAT-free
- Landlord tried to revoke election - Customs said he couldn't - VAT extracted from £7.8m agreed sale proceeds We successfully argued proper interpretation of the law, and not what it appeared to say
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