Corporate tax advice for international trading businesses:
Clearly, where a business is looking to expand outside of the UK, then tax issues and opportunities are likely to arise. We can assist in this process.
International real estate tax
We have recently advised on a number of large scale property developments, including creating an investment structure for a US hotel complex looking to raise capital and targeting UK resident investors. We have also been involved in the process of setting up a Real Estate Investment Trust (“REIT”), which is to be listed on the Channel Islands Stock Exchange.
Internationally mobile workers
Business is now a global affair and, as such, companies which operate cross border are likely to have members of staff spending time in different locations. This may create tax complications.
We have recently advised the London operation of one of the largest securities and derivatives brokers on the Moscow markets in a number of areas; including the tax treatment of short-term business visitors, non-resident directors and tax equalisation.
Intellectual property (“IP”) structuring
International groups may have the opportunity to structure how and where they hold their intellectual property, including goodwill. Recently, we advised an IP-rich international company looking to introduce their products in to the UK, Europe and the US on a suitable holding structure to exploit their know how efficiently.
Pensions tax advice:
We have provided tax advice in relation to the innovative use of UK SIPP’s and SSAS’s to fund commercial ventures.
We are also leading experts on the taxation of Qualifying Recognised Overseas Pension Schemes (“QROPS”) and Qualifying Non-UK Pension Schemes (“QNUPS”) and have advised many individuals and professional clients on the use and establishment of such structures.
UK SIPPs and SSASs
It is a misnomer that one cannot transact with one’s own pension scheme. We have provided tax advice in relation to UK pension schemes funding commercial ventures – such as property conversions and developments.
Pension Led Funding (“PLF”)
We have substantial experience in using pension schemes to fund existing trading businesses and investment businesses.
QROPS / QNUPS
QROPS and QNUPS are non-UK pension schemes but both benefit from varying degrees of recognition from HMRC.
The former can usually take transfers from UK registered pension schemes, without a tax charge.
The latter is a flexible structure for funds not currently in a pension scheme. It is particularly useful for UK situate property, and benefits from an IHT exemption in appropriate circumstances.
Tax advice for property investors and developers:
If you are a UK-based residential property investor then you will be conscious that there have been a number of significant changes over recent years.
These changes need to be factored in to your business model, and it may be desirable to review whether that business model is still appropriate. Furthermore, property is usually an asset class – whether residential or commercial – which is exposed to both IHT and CGT. We are leading the way in advising property investors and buy to let landlords on how to structure their portfolios.
Non-UK investors in UK residential property have probably suffered even more over the years at the legislator’s hand than those based in the UK. We have extensive experience in advising such investors.
Property development is a venture ‘in the nature of trade’, and, assuming other conditions are met, the property development activity will qualify for valuable reliefs, such as Entrepreneurs Relief (“ER”) for capital gains tax purposes and Business Property Relief (“BPR”) for IHT purposes.
It is common, for commercial purposes, for a property developer to operate each development through a separate SPV. This can also achieve attractive tax benefits. We can advise on how to approach this structure from a tax point of view, including the impact of the new anti-phoenixing rules which have been introduced by the Government.
We have extensive experience of advising both property investors and developers on all aspects of property specific taxes, such as SDLT, VAT and capital allowances.