An outsourced advisory service for Accountants

An accountant in London who we have worked with before asked us to prepare a report covering the tax position of their client’s group property restructure. The accountant wished to submit the report themselves under their own branding, with us acting on a ‘white label’ basis.

A corporate group consisting of several overseas companies owning UK residential properties, wanted to repatriate the properties to UK resident companies. A commonly owned UK holding company was formed with group companies underneath, with the properties transferred intra-group to the new UK companies.

We were engaged by the accountant to produce a report covering the availability of chargeable gains group relief and stamp duty land tax group relief on the transfer of the properties.

The accountant had a comprehensive report produced which they were able to add their own branding to and provide to the client as their own.

A solicitor who we work with regularly referred their client to us for advice on the stamp duty land tax position of their client’s property purchase. The client’s accountant was not able to advise on SDLT and therefore our stamp duty expert provided the advice.

The purchase consisted of a large detached house with 20 acres of land. In addition there was a cottage in the grounds of the house and also a separate barn conversion holiday let. To complicate matters the client was purchasing the house & cottage in their personal name but the land and holiday let in their company.

Our review of the purchase included an assessment of the cottage and barn conversion to ensure they qualified as separate dwellings. We then assessed the land to see whether it was in use for a private or agricultural purpose. Finally, we calculated the SDLT to include a multiple dwellings relief claim on the three residential properties, non-residential rates on the land, and linked transaction for the individual and company purchasers.

The client and their solicitor received advice on how to structure the purchases in the most tax efficient manner, with a reduction in stamp duty of £45,000 from the initial starting position.

We were asked by a local accountant to provide advice to their client who was in the process of selling both a subsidiary and assets. The accountant was happy for us to engage direct with, and provide advice to, their client, whilst keeping them in the loop on progress.

The company conducted its own trade and also owned a trading subsidiary. The company was selling intellectual property to one buyer and selling the trading subsidiary to another.

In respect of the trading subsidiary, we assisted with due diligence enquires from the buyer’s advisor, and then reviewed and advised on the sale purchase agreement, specifically on the general and tax warranties & indemnities. We also advised on the availability of substantial shareholding exemption to obtain a tax-free sale.

For the sale of intellectual property, we reviewed the asset purchase agreement and advised on the tax treatment of the intangible fixed asset sale, being a pre-2002 capital asset which we could offset against brought forward capital losses.

The client successfully sold both their subsidiary and their intangible assets, and paid zero tax. The subsidiary qualified for exemption and the asset gain was sheltered with losses.