Banking Tax Finance
Banking Tax & Finance Issue 3 | Summer 2009
In this Issue
Tax Relief Opportunities for Furnished Holiday Lettings
Energy Performance Certificates - Getting it Right
Enhanced Capital Allowances - The Hidden Minefield for Specifiers and Owners
Temporary First Year Allowance for Plant and Machinery
Claiming Plant and Machinery on Items Previously Included Within an Industrial Building Allowances Claim
Claiming Repairs on a Recent Acquisition
The Benefits of a Cost Segregation Study - India
Capital Allowances on Ground Rent
The Capital Allowances Toolkit
Disagreeing with a HM Revenue & Customs Decision
Economic Update - June 2009
Grants Newsletter - June 2009
Revisions to the Tax Relief for Contaminated Land
 
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Welcome

In this Summer edition of 'Bottom-Line Thinking' we look at a range of subjects focussing on Capital Allowances and related issues.

Some of the topics covered in this edition include; the reintroduction of 40% first year allowances in this years Budget and how it will benefit some businesses more than others, a window of opportunity for owners of overseas holiday letting businesses to claim additional tax relief, a study of the tax depreciation regime in India and a review of the many opportunities available for securing additional investments, from our Grants and Funding team.

A summary of each article can be quickly scanned below and full versions of all articles can be downloaded by just clicking their corresponding link. Many more articles and technical resources included in this and past editions can be found on the Davis Langdon Banking Tax & Finance teams website, www.dlcrosherjames.com; including information for property investors and developers, owners, occupiers, property professionals and lenders.

Should any of your colleagues want to receive future editions of 'Bottom Line Thinking', they can do so by registering their email addresses using the 'subscribe' button below.
 
Tax Relief Opportunities for Furnished Holiday Lettings
Changes announced in the 2009 Budget now entitle overseas holiday letting businesses to the same benefits already enjoyed by owners of UK based holiday homes. Based on our case studies, between 10% and 30% of the purchase price of a holiday home may be classified as integrated plant and machinery. This is in addition to the loose furniture and equipment that may already have been claimed.

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Energy Performance Certificates - Getting it Right
Following the introduction of Energy Performance Certificates in 2008, we are now seeing signs of a two-tier market emerging where some energy assessor businesses have been offering very low fees to undertake a complex technical task, whilst established professional surveying or engineering consultancies set out fees running into thousands of pounds for the same task, we look at the reasons and the choices available.

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Enhanced Capital Allowances - The Hidden Minefield for Specifiers and Owners
The Enhanced Capital Allowances scheme for promoting expenditure on energy efficient technology in buildings, although simple in its objective, has become a minefield for specifiers and building owners, who might want to take advantage of the tax breaks available. Since the budget, there have been some fundamental changes to a number of key technologies. It was initially thought that these would be ‘minor housekeeping’, but it has transpired they are more wide ranging.

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Temporary First Year Allowance for Plant and Machinery
As we mentioned in our earlier Budget announcement, the first year allowance will be available for most types of businesses, including property investment and there is no cap on the level of first year allowance. The first year allowance, however, is not available for certain types of expenditure. These exclusions mean that some businesses will benefit more than others.

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Claiming Plant and Machinery on Items Previously Included Within an Industrial Building Allowances Claim
With the phasing out of industrial building allowances brought in by the Finance Act 2008, owners of industrial buildings are increasingly interested in the possibility of reclassifying the plant and machinery previously included within an industrial buildings allowance claim.

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Claiming Repairs on a Recent Acquisition
In the case of repairs that are carried out to a property soon after it has been acquired, there is sometimes a temptation to treat some repair expenditure as capital, rather than revenue. The reason for this approach is because the recently acquired property has not been used in the business for any length of time.

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The Benefits of a Cost Segregation Study - India
In each country the relative benefits of the particular tax depreciation regime will only become clear through detailed analysis. Last issue we featured Poland, this month we consider incentives in India.

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Capital Allowances on Ground Rent
When an investor purchases the freehold of a block of flats, Capital Allowances are probably the last thing that is built into his or her appraisal. It is not likely that the investor will realise that in addition to purchasing an income stream, he or she has also purchased plant and machinery could reduce the tax liability of that investor.

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The Capital Allowances Toolkit
It was recently announced by HM Revenue & Customs that it will be introducing a series of toolkits for tax agents in order to provide guidance on how HM Revenue & Customs views compliance risk and also to set out how tax agents can reduce the likelihood of mistakes occurring in tax returns.

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Disagreeing with a HM Revenue & Customs Decision
If a taxpayer is unable to agree with a decision of HM Revenue & Customs, then there is a right of appeal under the Taxes Management Act. Both the taxpayer and HM Revenue & Customs will usually prefer to try and reach agreement without proceeding to a formal hearing. In a move that may help facilitate a reduction in the number of appeals to the tax tribunals, HM Revenue Customs have introduced a new statutory review procedure which can be followed prior to making an appeal to the tribunal.

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Economic Update - June 2009
Signs of stabilisation continue to emerge, but there are still questions over their breadth and depth. Latest data from the UK point to weakening retail sales, while the Bank of England’s governor Mervin King stressed that whilst the UK may be over the worst, substantial challenges remain.

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Grants Newsletter - June 2009
In these challenging times, where projects are stalling through lack of funds, it is essential to research and maximise all opportunities for securing additional investments. Our grants and funding team works across all business sectors throughout the UK, providing advice and applying for public funds on behalf of applicants.

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Revisions to the Tax Relief for Contaminated Land
Draft legislation has been published with effect from 1 April 2009 and HM Revenue & Customs more recently released their accompanying draft guidance notes. The additional tax relief can make a significant difference at a project level for example, a £1m remediation bill, will mean up to 42% can be recovered through the tax relief scheme, which could drastically alter the final decision on a project's viability.

More »
 
 
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Whilst every effort has been made to ensure accuracy, information contained within our newsletter may not be comprehensive and recipients should not act upon it without seeking professional advice.