United Kingdom
Finance Bill 2012 Draft Clauses (December 2011)
An analysis of what the clauses might mean for real estate businesses
There will be mixed reactions from the property industry to the publication of the proposed legislative changes.
No crackdown on stamp duty avoidance... yet
Possibly most surprising, particularly given the recent media attention, was the absence of any specific changes targeted at stamp duty land tax avoidance. It was widely anticipated in the press that buyers of properties held through offshore companies would no longer escape the 5% charge but the Government have not (yet) bowed to pressure. These buyers can breathe a sigh of relief for now, but they should not be complacent as the Government may well want to surprise us. In the continuing battle against so called 'schemes' the existing disclosure rules are being tightened. This will ensure that smaller property purchases do not slip through unnoticed. Click here for our full analysis on the stamp duty land tax changes.
From a window of opportunity to a missed opportunity for UK-REITs
After much hype it is only today that we can begin to understand how the proposed UK-REIT changes will work in practice, as well as how the proposals interact with each other and the existing regime's rules. Unfortunately, as drafted, the proposals are not as far-reaching or beneficial as we had hoped for. Click here for our full analysis on the UK-REIT reforms.
Make allowances for capital allowances
The proposed changes to capital allowances on fixtures have proved less restrictive than we feared, but a two year time limit will be introduced together with a more prescriptive method of determining the value on which the claim may be made. This reinforces the importance of considering capital allowances on fixtures at the time of acquisition. Click here for our full analysis on capital allowances.
Other changes
To find out about enterprise zones, PAIF and other changes, please read BDO's full analysis of the draft Finance Bill.
Download our full analysis for real estate
To download our full analysis of the Finance Bill 2012 draft clauses for real estate - please click on the link below:
Real Estate - what the Finance Bill 2012 draft clauses mean for you
We trust that you will find our summary of interest; should you require any additional information please do not hesitate to contact your usual BDO adviser or Terry Moore.