business and property taxes translating tax for you
Did you know? • Between 2008 and 2016 the standard rate of UK corporation tax has fallen from 30% to 20%. It has been announced that the rate will reduce to 17% by 2020 • In the same period there have been three new taxes and eight changes in the rate of Stamp Duty Land Tax, all potentially increasing the cost of buying and owning property (especially residential property) in the UK. Four further tax changes have made or been announced that will further increase the cost of residential property by 2020.
“ Our mission is to translate tax into English for our clients, so they can make the best choices for their circumstances. No waffle. No old-fashioned verbiage. Just clear advice that fits our clients’ personal circumstances and on which they can act.” Leigh Sayliss, Partner and Head of Business and Property Taxes Howard Kennedy
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Expert guidance for the right choices The UK’s tax laws are wide ranging and complex. Buying, selling or restructuring companies, businesses and real estate all have major implications. HMRC’s renewed focus on tax avoidance emphasises the need for early and measured action by businesses and individuals. Making sense of all of this can be difficult. Penalties for non-compliance can be tough. Howard Kennedy’s Business and Property Taxes team provides expert, commercially focused advice that gives you clarity on your position, minimising your exposure while ensuring compliance. Our comprehensive expertise helps you navigate the complexities of UK tax law. In property transactions, where consideration of tax matters is required upfront, we work with owners, developers, landlords and tenants to maximise opportunities for relief, in particular around stamp duties and VAT.
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Unlike many advisers, who may focus solely on one area of tax, we work across the UK tax landscape. We understand the interactions between the different types of tax that may affect your business, such as taxes on income and capital gains, VAT and stamp duties – and use this knowledge to help you make your tax arrangements as efficient as possible. In the wider corporate world, growth or refocusing efforts may have tax implications. We work closely with accountants to help our clients identify issues in mergers or acquisitions, mapping risks to underlying commercial agreements to inform negotiations. In the world of tax, one size rarely fits all, and so our expertise will help focus on the choices that are right for your situation. We’re known for being one of the most approachable firms in the industry, so we’ll keep you up to speed throughout the whole process. In short, our clear advice will help you keep on top of your affairs.
Our services Howard Kennedy’s Business and Property Taxes team are experienced in all areas of UK law. Within the property sector, we help our individuals, developers, wealth funds and investment companies put together their real estate deals in the most tax-efficient way. We can advise on the best way to structure inward investment for funders outside the UK and we can help UK and non-UK investors avoid common pitfalls that can result in more tax being paid than is necessary.
Where our clients have used other advisers, we are experienced in working with those advisers to carry their proposals into effect, using our expertise to ensure that the detailed implementation and documentation matches the tax planning. We also work with private clients with complex tax arrangements, advising them on disclosure and compliance, and negotiating with HMRC to agree a fair resolution of their tax affairs.
Our advice to corporate clients and entrepreneurs helps them understand potential tax implications as they grow and diversify. We can help minimise potential tax liabilities of mergers and acquisitions, as well as design new, tax efficient, incentive schemes.
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Market insight “The abundance of information on the internet means that HMRC is increasing its links to data not only from other government departments and other tax authorities but also from external sources such as news feeds and trade magazines. HMRC is also increasing its willingness to “name and shame” those whose behaviour it considers as unacceptable. This is changing the decisions that individuals and businesses have to make. It is no longer a case of thinking “Will HMRC find out what I have done?” and “Does it matter if they do as no-one else will ever know?” – the question is now becoming “When will HMRC find out and do I mind if the world knows too?” Leigh Sayliss, Partner and Head of Business and Property Taxes Howard Kennedy
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Key contacts
Recent work • Advising on company and business transactions, buying, selling and restructuring companies and businesses, including advice and support in drafting and negotiating tax documentation such as working with the sellers on tax issues in relation to the £21m sale of Funkin Limited to AG Barr
• Advising on property development including the acquisition of commercial properties for residential development such as the acquisition and funding of an £18m office block within London’s M25, with permitted development rights to convert it into 125 residential units
• Advising on management and employee incentives, share ownership and options, including advice on entrepreneur’s relief and tax advantaged share option schemes such as implementing EMI Options and advising on employee shareholder shares
• Advising on the ownership of high value UK residential property by UK and non-UK resident owners including advice on the Annual Tax on Enveloped Dwellings and capital gains tax
Leigh Sayliss Partner: Head of Business and Property Taxes T: +44 (0)20 3755 5526 E: leigh.sayliss@howardkennedy.com
Philip Vickery Senior Associate: Business and Property Taxes T: +44 (0)20 3755 5813 E: philip.vickery@howardkennedy.com
• Advising on negotiations and disputes with HMRC.
• Advising on commercial and residential property transactions including advice on VAT, Stamp Duty Land Tax, capital allowances and the Construction Industry Scheme on the acquisition, restructuring and sale of properties, such as advising around tax issues on restructuring a £44m property portfolio
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No.1 London Bridge London SE1 9BG DX 144370 Southwark 4 Tel: +44 (0)20 3755 6000 Fax: +44 (0)20 3650 7000 www.howardkennedy.com