Real estate and construction
The property market has remained fairly subdued recently with the issues of supply and demand, space, investment and confidence remaining key factors.
Helping our clients with current sector issues
We work with a wide range of clients across the property and construction sector including investors, developers, construction firms, estate agents, surveyors and architects to understand and overcome the issues and challenges that they face such as:
- Financial concerns involving the shortage of new finance, the difficulties of refinancing, restructuring and meeting the demands of loan covenant compliance
- Issues surrounding VAT and stamp duty land tax (SDLT)
- Lack of demand for residential units as a consequence of the dearth of mortgage finance and low level of consumer confidence
Practical and relevant solutions to help your business succeed
Through our work with clients in property and construction, Baker Tilly provides support to businesses in areas such as:
- Debt restructuring and related specialist tax advice
- Compliance services including external and internal audit
- Tax planning and compliance – VAT, corporation tax, PAYE, National Insurance and SDLT
- Corporate finance including mergers, acquisitions, disposals and introductions to suitable business partners
- Advice on cash management, planning and mitigating tax risks
- We also hold technical seminars throughout the year and supply e-mail technical briefings on matters of importance to the sector.
Our approach is based on integrating our areas of specialist expertise and delivering value added through our national network of local offices. We enable our clients to keep up to date with internal and external pressures that are sweeping the sector and to benefit from our experience in the sector by:
- Providing assurance to businesses and their key stakeholders
- Providing assurance that our clients are compliant with their debt covenants
- Mitigating where possible the unwelcome tax consequences of restructuring arrangements
- Keeping our clients updated on the latest developments in the sector
- Enabling clients to keep pace with tax changes
- Proposed changes to landlord rights: how they may affect you
Changes to the ancient common law right of landlords to distrain for arrears of rent have been on the agenda for some time and have now come to fruition. The changes are far reaching and could have significant impact.
- The demanding insurance requirements from lenders that you should be aware of
There has recently been a hardening stance by lenders and their legal advisers in regard to insurance policies covering properties used as security for loans.
- High value residential property tax - just 40 days left to comply
A new tax was introduced on 1 April 2013 for high value residential property owned by companies and certain other vehicles involving companies or which are treated as companies. Businesses affected need to take action now in order to comply with their obligations.
- Potential VAT refund in respect of conversion costs
A new VAT case creates a potential opportunity if you have converted and sold a residential property from a building which has been previously used for both residential and non-residential purposes.
- When is a TOGC is not a TOGC
For VAT purposes, the transfer of a business as a going concern (TOGC) is not treated as a supply, thereby removing the need to charge VAT on the sale of an ongoing business.
- Enhance Capital Allowances
Incorporating assets that qualify for ECAs into building works gives a 100% tax relief on the qualifying cost, providing much improved cash flow and the opportunity for real after tax savings.
- What vehicle should you buy it in?
The first question many property buyers ask is “what vehicle should I buy it in?” The range of possible answers is extensive and it is unlikely that any two possibilities will give the precise same result. The challenge is to identify the best of the bunch.
- The Taxation of high value residential properties
This year’s budget proposed significant changes regarding the acquisition and ownership of high value residential properties owned through companies, trusts and other similar entities (referred to as “non-natural” persons).
- Payments and Reciepts for Right to Light
In the light of the High Court decision in the Heaney case, many property developers are giving considerable thought to resolving issues arising from the right to light of neighbouring buildings at an early stage.
- Property and construction brochure
Baker Tilly’s Property and Construction Group is involved in assisting and advising clients on all aspects of property and construction usage and ownership.
- Baker Tilly Foundation construction briefing - Summer Autumn 2012
In our latest construction sector briefing, we highlight the pressures continuing to face both contractors and sub-contractors, discuss why good financial management is critical and explore alternative funding solutions.