The Social and Economic Influence

This includes some high profile stock exchange listings, such as Kainos, Andor Technology and Fusion Antibodies.

“Spinout firms have always been a real strength for us,” Ian begins. “We are very good at creating and supporting new spinouts and we also lead the way in the UK for knowledge transfer projects which means if there is an industry problem, we have a university solution.”

And, he says, while the past year has been a challenging one for many spinouts, particularly those seeking to raise equity, most ventures have been able to successfully progress and he is optimistic for what the future holds when looking at the quality of the commercialisation opportunities that continue to emerge from the research at Queen’s.

The university also works with established industry names to create solutions for sectorspecific issues.

Ian continues: “That is one of the things that makes us distinctive – our ability to have an impact on society and the economy – and that delivers a significant number of jobs and opportunities here.”

During the pandemic, the university doubled its efforts to contribute to the economy by addressing skills gaps and providing solutions to unemployment.

“We established a new suite of courses supported by the Department for the Economy to upskill and retrain those individuals whose employment had been impacted by COVID-19. Over 500 people enrolled on the courses which enabled them to transition into new sectors including software. That help is needed to grow the knowledge economy here and to meet the industry needs of Northern Ireland.”

That suite of courses includes Advanced Composites and Polymers, Energy Management and Green Technology, Professional Software Development (Data Science), Artificial Intelligence and Biomedical Engineering, amongst others.

Ian says the Belfast Regional City Deal (BRCD) – the bespoke package of funding and decision-making powers negotiated between central government and local authorities – will further intensify Queen’s economic output.

Alongside Ulster University, Queen’s will lead the development of five innovation projects that fall within the “Innovation and Digital” strand of the BRCD, designed to be the catalyst for investment in research and development in the region. The result should be the creation of 20,000 new jobs.

“If we want the economy to grow, we need better jobs and to get that it’s important to invest in R&D. The City Deal is important as it supports us and business, creating a cycle of investing and attracting more investment, leading to more jobs, better jobs and higher paid jobs. That’s the approach we’re trying to take. We’re not just producing a skilled workforce but an expansion of key areas,” Ian continues.

Queen’s makes a significant contribution to the NI and the UK economy, contributing £1.9bn, with every £1m invested in research generating an additional £3.9 million to the UK economy (London Economics 2018).

It has a strong track record of turning R&D into economic impact so it’s not surprising that Ian wants to expand its reach by addressing the exodus of students from Northern Ireland every year.

“There are some significant inequalities in the provision of higher education that we have here. We have 70 places for every 100 applications meaning over 5,000 students leave every year and only a third come back.

“If you compare that figure to Scotland, it loses 5% of its students, we lose 30%. In Scotland, they have an influx of large numbers coming in and have a net gain of 18% in university intake: we have a net loss of 30% but we can fix it immediately,” he says.

“We can do that by getting the tertiary education sector to work together to maximise opportunities. What I’d like to see is greater movement across the sector with an extensive range of routes into higher education available to students.”

Admissions during the pandemic has been one of the biggest challenges for Ian and his team. With no exams to go by, and fewer students taking a gap year, demand increased with Queen’s taking in an extra 650 students from Northern Ireland alone last year.

“It was important for us to be as flexible as possible to best support students during this difficult year. We also welcomed an increased number of international students who have enhanced our diverse student community.”

Sustainability is another priority for Ian, with a strong carbon management plan in place.

“More importantly, we believe we have to embed an understanding of sustainability in all courses. Students are asking for it and employers are asking for it.”

Equality in education is another top theme, he adds.

“Thirty per cent of students come from disadvantaged backgrounds and we have a wide range of Widening Participation initiatives to support young people from post primary school to their transition into university. We do this through philanthropic funds and it’s a very tangible approach.

“As a university, we feel that we not only deliver economic impact, but we have considerable social responsibility. Within our new strategy, the social and economic impact is seen as an overarching theme: we want to help society and the economy progress. We want to be a socially important organisation.”

“If we want the economy to grow, we need better jobs and to get that it’s important to invest in R&D. The City Deal is important as it supports us and business, creating a cycle of investing and attracting more investment, leading to more jobs, better jobs and higher paid jobs. That’s the approach we’re trying to take. We’re not just producing a skilled workforce but an expansion of key areas.”

VAT AND PROPERTY TRANSACTIONS – BEWARE OF COSTLY PITFALLS

Brian Tilly

Most businesses will at some time be involved in property transactions and whether this is the purchase, sale or lease of property, VAT is an important consideration, particularly given that the value of such transactions is normally significant.

In our experience, this is an area that can often cause difficulty as if the correct VAT treatment is not applied at the time of the transaction, it may not be possible to rectify the position later without an undue cost arising for businesses.

The rules are complex and each transaction should be reviewed in isolation, but the summary below highlights the main areas for consideration:

1. Confirm the type of property and supply

Supplies of land and property can be standard rate, zero rate, exempt or outside the scope depending on the exact nature of the supply. For commercial property, the supply may be standard rate or exempt depending on whether the property is new for VAT purposes and whether an option to tax is in place. The type of property and its VAT history is important.

2. Is the option to tax relevant?

The sale of commercial property that is opted to tax is subject to VAT at the standard rate (unless in limited cases where the option is disapplied). If an option to tax is not in place it is important to consider if this should be undertaken as an exempt sale can have an impact on VAT previously recovered relating to the property and on costs relating to the sale.

3. Does the Capital Goods Scheme apply?

If the property is a Capital Goods Scheme item, you need to consider the implications. An exempt sale may give rise to a clawback of VAT previously recovered and by opting to tax the property, it may be possible to avoid this.

4. Is the property part of the transfer of a business?

If you are selling a property as part of the sale of your business or as a property rental business, then transfer of going concern (TOGC) relief may apply so that VAT is not charged on the sale. It is important to be aware that certain conditions relating to the transfer of the property must be met in order for this relief to apply.

5. Are the relevant VAT clauses included in the contract?

All contracts should include appropriate VAT clauses. There should be a basic clause to allow VAT to be charged and clauses relating to the option to tax or TOGC relief or other circumstances if these are appropriate. The seller will also want to ensure a clause is inserted to ensure that any VAT liability that may arise after the sale is the responsibility of the purchaser.

6. Take advice early

Taking advice at the time of the transaction is important to ensure not only the correct but the optimal VAT treatment and to ensure the right VAT clauses and documentation are in place for the transaction.

For further information, please contact ASM’s VAT team on 028 90 249222 or email brian.tilly@asmbelfast.com or richard. blakeman@asmbelfast.com

The content of this article is for information purposes only and advice particular to your circumstances should be sought from a professional adviser.

ASM

4th Floor Glendinning House 6 Murray Street, Belfast BT1 6DN www.asmaccountants.com brian.tilly@asmbelfast.com