Pension Fund / Non-Tax Payer

Lifecycle

Whilst pension funds, charities and other non-tax payers do not directly benefit from tax relief they can, nonetheless, add value to their property assets by establishing and protecting the capital allowances value to pass onto subsequent owners of a property.

Outlined below are the issues that need to be considered at each stage of the project lifecycle to make sure the benefits from the tax relief are fully realised.

BUY

+ Pre-Acquisition Advice: Second Hand Properties

Pre-Acquisition Advice: Second Hand Properties

The Issue: Capital Allowances can play a key part in the decision to invest in property.  From April 2014 the purchaser’s entitlement to capital allowances is dependant almost entirely on the actions of the seller.  Failure to enforce an obligation on the seller to provide the necessary information is likely to result in no claim for the purchaser. Non-tax payers also need to be aware that they can preserve the allowances for future owners.

How we Help:

  • We confirm the entitlement to claim capital allowances.
  • We liaise with your legal team to make sure the pre-contract enquiries ask the right questions.
  • We advise what clauses need to be incorporated into the sale agreement to protect your interests.
  • We confirm the scope and estimated value of your capital allowances claim.

Benefit to the Client:

  • Empowered: provides you with a stronger negotiating position.
  • Reassured: that the maximum amount of allowances can be claimed and preserved.
  • Protected: the contractual obligations of the seller properly recorded.

Why use TFI Group?

LEASE INCENTIVES

+ Lease Incentives: Contributions

Lease Incentives: Contributions

The Issue: When negotiating lease incentives one option is to contribute towards the tenant’s fit out costs.  These contributions can attract valuable allowances and reliefs.  Tax relief can therefore be lost if not planned properly. 

How we Help:

  • We advise the landlord on the best way to structure the contribution to achieve the desired outcome.
  • We liaise with your legal team to highlight the key issues to be addressed in the contribution agreement.

Benefit to the Client:

  • Improved cash flow: A contribution that is arranged in the optimum way for the landlord.
  • Good Governance: For non-tax payers an ability to capture valuable tax benefits to pass onto subsequent purchasers.

Why use TFI Group?

SELL

+ Sales Aids

Sales Aids

The Issue: Availability of Capital Allowances can significantly improve the attractiveness of a commercial investment but sellers still fail to fully promote the tax benefits to potential purchasers especially in instances where the seller has no interest in the tax relief themselves (housebuilders / developers / non-tax payers).

How we Help:

  • We provide sellers with an estimate of the allowances.
  • We provide the net present value cash benefit likely to be derived by the buyer.
  • We provide a Capital Allowances Sales Aid  to be included in the marketing material.

Benefit to the Client:

  • Marketability: Increased value and attractiveness of the investment.
  • Protected: Removes the possibility of delay in the sale resulting from incomplete allowances information.
  • Empowered: A stronger negotiating position.

Why use TFI Group?

CORPORATE SERVICES

+ Portfolio Management for Non-Tax Payers

Portfolio Management for Non-Tax Payers

The Issue: New rules introduced in April 14 place an increasing burden on the buyer to confirm the capital allowances position prior to completing the deal.  Non-tax payers continue to underestimate their role in protecting the tax relief for future owners and are failing to promote the full benefits to potential buyers due to their own lack of knowledge and information.

How we Help:

  • We review the tax history of the properties held in the portfolio to ascertain what claims may be available to a purchaser.
  • We make enquiries with former owners where the information is incomplete.
  • We carry out a high level review of new development costs, refurbishments and contributions.
  • We make an assessment of the potential tax relief.
  • We prepare on an on line register with the relevant information on each property.
  • We prepare sales aids prior to disposal to highlight the available tax relief.

Benefit to the Client:

  • Good Governance: best practice established and allowances preserved.
  • Reassured: you will know the detail of what you own.
  • Empowered: with information to negotiate a better deal on disposal.
  • No Delays: risk of delay at sale due to incomplete capital allowances information mitigated.

Why use TFI Group?

TFI-graphic-final-non-tax-payer