R PA RT N
E
AT I
PETE MILLER
ST
X TA
S
HIP
THE
M
LE
RS
IL
ON
A SPECI
LI
Partner of The Miller Partnership
HMRC Clearances:
Why you must take professional tax advice Pete gives us his expert view on obtaining taxation clearances efficiently
O
btaining taxation clearances from HMRC is an important aspect of ensuring that your corporate transaction goes ahead smoothly. If, for instance, you’re undertaking a company reorganisation, restructure or demerger, you will need to apply to HMRC for statutory clearance first, so you know in advance how your transaction will be treated for tax. HMRC has 30 days to respond to a clearance application and, until recently, this strict time limit was always met, with responses often received within a fortnight if not sooner. However, since the clearance unit’s relocation from London to Birmingham 18 months ago and the formation of a new team, clients are frequently waiting longer than 30 days for an initial reply. If the unit’s staff then ask for more information, clearances can take as long as six months. To further compound the frustration, the unit can only be reached by email, not telephone.
We’ve also seen clients encounter difficulties with the new team misinterpreting or misunderstanding the ‘commercial reasons’ statutory clearance test, which has meant in some instances having to go to Tribunal to get the decision we can’t get from HMRC. To try and prevent this situation arising, we are now writing much longer, more detailed clearance letters when applying. Obtaining clearance can be a complex procedure and, given these technical and administrative issues, it is even more essential that you seek professional tax advice. The Miller Partnership have many years of experience and expertise in this area. In fact, before entering private practice, Pete Miller held a senior role in clearances at the Inland Revenue. Email pete.miller@themillerpartnership.com or call 0116 208 1020 for personal guidance through the process, including drafting your application.
Why Leicester is a hot spot for buy-to-let investments The city is known for its king in a car park and its football team’s 5000-1 odds of winning the Premier League. Could it now be on the map for its attractive property prospects too?
A
mortgage and protection adviser has asserted that Leicester is a desirable location for property investors. Thought to offer higher yield projections than London, Leicestershire buy-to-let properties are popping up across the county. Minay Raithatha, from Intelligent Adviser, says buy-to-let investors from outside the county are benefiting from higher rental yields in Leicester. “We’ve noticed a lot of investors outside Leicester who are seeing the city as a good source of investment,” Minay explained. “This is because properties on the whole are cheaper than the South East. We also have 30 | NICHE
two universities – which, of course, as lectures go online, we may find has an impact on landlords in the student market, but there is still sufficient demand from professionals and families.” There is one area that is particularly sought after, according to Minay. “The Belgrave and city area has seen a huge increase in property prices over the last 18 months. It has many local amenities, temples, culturally diverse retail outlets, and a community feel, making it a good location for investors. “For people wanting to get into buyto-lets, the key thing is having a decent deposit, preferably at least 25%. Rather than using traditional investments like pensions, stocks and shares, people have always had confidence in bricks and mortar, even after the property blip in 2008.”
Another tip Minay suggests is the possibility of setting up a limited company for buy-to let investments, as this can prove to be more taxefficient. However, speak to a specialist tax adviser before making this decision. “We receive a lot of calls daily from people who just want help and guidance, and we’re more than happy to give them as much advice as possible when looking to buy a property.” Call Minay on 07958 632573 or visit iadviser.net to find out more.