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Why Us

The foundation of our practice rests on three core beliefs:

  • Service
  • Knowledge
  • Trust

We pride ourselves on delivering exceptional service, first time, everytime.
Our knowledge built upon combined decades of expert experience in tax and accountancy so you can rest assured that the most important of financial decisions are in the most competent hands.

Our objective is to become your most trusted adviser.

Our promises to you

To ensure that we can deliver this, we have set firmwide minimum service standards.

Accordingly, all Partners and Members of staff shall ensure that:

  • Expect to receive exceptional service at all times.
  • To provide unparalleled access to senior tax advisers when you need them.
  • All emails and phone calls will be responded to within 24 hours during normal business days. In the event we cannot answer your query, we will acknowledge receipt and provide a timetable for further action within the same timeframe.
  • A commitment to aim to be always available during business hours and, in emergency cases, out of office hours should you need us.
  • To offer services that provide efficient business management – placing the power of business planning into your hands.
  • You will have one point of contact, a dedicated Client Manager who will be solely responsible for your affairs.

Latest news & blogs…

Tax Planning with Beneficial Interest Company Trusts – the challenges for Landlords

Why Us Shipleys Tax Advisors

THE EVER-CHANGING landscape of UK tax law has prompted landlords to explore alternative legal structures for tax efficient property ownership. One such structure gaining more attention recently is the Beneficial Interest Company Trust (BICT). However, as will be seem below this complex model is not without its challenges and debate.

In today’s Shipleys Tax brief we will look at the workings of a BICT, its potential benefits, drawbacks, and the key considerations for landlords considering this route.

What is a Beneficial Interest Company Trust (BICT)?

A Beneficial Interest Company Trust (BICT) is a legal structure that has gained popularity among landlords in the UK, particularly following changes to the infamous Section 24 income tax relief in 2017 for rental income. BICTs seemingly allows landlords to strategically manage the economic value of their properties in a company, while retaining the “legal” title of the property, and thus the mortgage, in their personal name.

BICTs: The Appeal for Landlords

There are several key reasons why landlords are increasingly adopting BICTs. The trust structure purportedly enables landlords to enjoy personal mortgage rates on properties, while treating them as company assets from a tax perspective. In light of the restrictions on interest relief announced in 2015, landlords can put the rental income from personally held property (and related borrowing costs) through a Limited Company to help minimize their tax liability.

BICTs allows landlords to strategically manage the economic value of their properties in a company, while retaining the “legal” title of the property, and thus the mortgage, in their personal name.

Perceived Key Advantages of BICTs for Landlords

  • Mitigating the Impact of Section 24 Interest Relief Restriction: BICTs can help landlords offset mortgage interest against rental income, thus reducing their tax liability.
  • Preserving Personal Tax Allowances: BICTs allow landlords to ensure rental income falls within the corporation tax regime, not subject to personal income tax. This can maintain access to personal tax allowances, beneficial when rental income is taxed at higher individual tax rates.
  • Future Planning and Flexibility: BICTs offer flexibility for estate planning and asset transfer to future generations. The trust structure allows for the addition of beneficiaries or changing the ownership structure without transferring the property’s legal title.

The Risks and Challenges of BICTs

While BICTs might seem like a silver bullet, they are not without significant complexities and potential pitfalls. Landlords should exercise caution and thoroughly consider these key challenges:

  • Complex Legal and Tax Implications: BICTs involve intricate legal and tax arrangements. Ensuring compliance and avoiding unintended consequences requires advice from professionals well-versed in trust law and tax legislation. There is debate within the tax profession about this structure. Some have suggested potential mortgage fraud, mismatch of income and mortgage interest relief, and likely challenges from HMRC on the basis that such a structure is “tax-motivated” rather than commercially motivated and therefore subject to anti-avoidance legislation. HMRC will not provide approval for BICTs because these have nothing whatsoever to do with tax. This is because the company itself has no tax advantages over and above any other form of UK limited company.
  • Lender’s Reluctance: Some lenders are wary of BICTs, fearing they could be seen as contrived and fall foul of HMRC anti-avoidance legislation. This perception could impact a landlord’s ability to secure mortgage finance, and if the BICT is deemed a tax avoidance scheme, landlords could face a hefty tax bill.
  • Costs and Administrative Burden: Establishing and maintaining a BICT can be costly. The ongoing administrative responsibilities include filing annual accounts and tax returns for the SPV, which can be time-consuming.

There is debate within the tax profession about this structure. Some have suggested potential mortgage fraud, mismatch of income and mortgage interest relief, and likely challenges from HMRC…

  • Potential Future Legislative Changes: Tax laws and regulations evolve over time. There’s no guarantee that the current tax advantages linked with BICTs will persist. Future legislative changes could impact the viability of BICTs.
  • Financing Challenges: Transitioning properties into a BICT can create financing difficulties. Lenders often have different criteria and loan products for SPVs compared to individual landlords.

To BICT or Not to BICT

BICTs have provided some landlords with a strategy to navigate the tax challenges, but they are not a one-size-fits-all solution, nor are they a sure fit. Each landlord’s circumstances and objectives are unique, making it crucial to conduct a thorough assessment and seek professional advice tailored to your specific situation before considering such a legal structure.

Always remember that tax planning is not a short-term endeavour. Before moving forward with a BICT or any other tax planning strategy, taxpayers need to ensure that they are comfortable with the potential outcomes and have considered all available options.

Consulting with a qualified tax adviser and a mortgage consultant before making any decisions is crucial. As the tax difference between personal name and limited company rates continues to narrow, the cost-effectiveness of BICTs may also change.

In conclusion, while the BICT is an available solution for some landlords, understanding its pros and cons is essential to making an informed decision. Remember, effective tax planning is about strategy, not just short-term gains.

If you are affected by any of the issues above and would like more information, please call 0114 272 4984 or email info@shipleystax.com.

Please note that Shipleys Tax do not give free advice by email or telephone.

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Getting The Right Advice: Top 5 Reasons Why It Matters

Why Us Shipleys Tax Advisors

FOR MANY in the UK, the tax and accounting landscape is seen as overly complicated and ever-changing, making it vital to choose a tax adviser who can effectively navigate this terrain.

In todays’ Shipleys Tax blog we look at the Top Five Reasons why selecting the right tax adviser is crucial for your overall financial health.

Does paying more save more? Let’s find out.

1. Tax Optimisation: Maximise Tax Savings

The UK tax code is a labyrinth of potential savings, but only a proficient tax adviser can unlock these opportunities. They can identify hidden deductions, credits, and exemptions tailored to your financial situation. An inexperienced adviser, on the other hand, may overlook these nuances, resulting in unnecessarily high tax liabilities. For instance, failing to utilise even simple tax reliefs such as Entrepreneur’s Relief or R&D Tax Credits can significantly inflate your tax bill.

2. Asset Protection: Safeguarding Your Wealth

Whether it’s real estate, business assets, or investments like gold and cryptocurrencies, the right tax adviser can help investors protect their wealth. They can devise strategies to shield these assets from creditors, legal disputes, and unexpected personal circumstances. They understand UK-specific legal structures and practices, like the use of LLPs, trusts or limited companies, which can effectively safeguard your wealth. However, an adviser with less experience or understanding of the UK market might lack the in-depth knowledge of these asset protection strategies, potentially leaving your assets vulnerable to financial risks.

For landlords and overseas investors in the UK property market, strategising asset protection through effective tax planning is a critical part of investment management. A seasoned tax adviser can provide invaluable guidance on utilising the UK’s tax legislation to your advantage. They can help design strategies such as setting up tax efficient structures for buy-to-let or development properties or making optimal use of tax reliefs which reduce tax exposure to taxes such VAT, SDLT, CGT or ATED. These tax planning strategies can minimise your tax liabilities and shield your investments from undue exposure. On the other hand, less experienced advisers might not have the breadth of knowledge to leverage these tax benefits effectively, which could result in higher tax payments and potential erosion of your investment returns.

3. Staying Ahead in the Crypto Game: Cryptocurrency Taxation Expertise

The new frontier of cryptocurrencies brings with it complex tax implications. A savvy tax adviser stays abreast of these changes, enabling you to comply with the law while maximising the benefits of your crypto investments. In contrast, an inexperienced adviser might not fully understand the intricacies of cryptocurrency taxation, potentially leading to compliance issues or overpayment of taxes.

4. Enhancing Stakeholder Confidence

Your financial statements are more than just numbers; they’re a reflection of your financial health and business acumen. A top-tier tax adviser will ensure your accounts are accurate, transparent, and compliant, enhancing the confidence of stakeholders like banks, HMRC, and potential buyers. In contrast, financial statements prepared by less experienced advisers may raise questions about their accuracy and reliability, potentially impacting your relationships with these crucial stakeholders.

In contrast, financial statements prepared by less experienced advisers may raise questions about their accuracy and reliability, which can have significant implications. For instance, banks may become hesitant in extending credit or approving loans if they perceive inconsistencies or inaccuracies in your financial statements. HMRC might increase scrutiny on your tax filings, possibly triggering audits and investigations. Potential buyers or investors may question the viability of your business based on these financial statements, which could affect your business’s valuation and sale prospects. Even your business partners and employees might lose confidence in the management and financial stability of the business. In essence, less precise and trustworthy financial statements can ripple through all aspects of your business, potentially affecting your reputation, financial stability, and growth opportunities.

5. Long-term Wealth Management: Planning for the Future

Effective wealth management and retirement planning require foresight and expertise. The right tax adviser can guide you towards tax-efficient investment strategies that will maximise your wealth in the long run. On the other hand, an adviser with less experience may lack the insight to effectively manage your long-term wealth, which could impact your financial comfort in retirement.

In conclusion, the importance of choosing the right tax adviser cannot be overstated. Far too often, individuals and businesses fall into the trap of seeking advice only when a problem arises, missing out on valuable opportunities for proactive financial planning and strategy.

Some may opt for inexperienced or less qualified advisers in an attempt to save costs, overlooking the fact that expert advice is an investment in itself. Like any good investment, a competent adviser can generate a healthy return in the form of tax savings, improved financial management, increased stakeholder confidence, and secured long-term wealth.

Others may hesitate to invest in high-quality advice, failing to understand that the costs of inadequate or incorrect advice can far outweigh the fees of a top-tier adviser. The risks range from missed tax savings and audit risks to reduced stakeholder confidence and compromised asset protection.

If you are affected by any of the issues above and would like more information, please call 0114 272 4984 or email info@shipleystax.com.

Please note that Shipleys Tax do not give free advice by email or telephone.

A very happy Eid Mubarak to all

Why Us Shipleys Tax Advisors

From the Shipleys Tax Team!

Eid ul Adha

Eid ul-Adha is the latter of the two Islamic holidays (the first being Eid ul Fitr) celebrated worldwide each year. It honours the willingness of Ibrahim (Abraham) to sacrifice his son Ismail (Ishmael) as an act of obedience to God’s command. At the point Ibrahim was to sacrifice his son, however, God provided a lamb to sacrifice instead.

Who Celebrates Eid ul-Adha in the UK?

With nearly 2.8 million Muslims living in the United Kingdom, which equals about 4.8% of the population, Islam constitutes the second largest religion in the country, after Christianity.

How is Eid ul-Adha celebrated in the UK?

On Eid ul-Adha, Muslims in the UK usually start the day by performing ghusl, a full-body purification ritual. They then dress in their finest outfits and attend a prayer service at an outdoor prayer ground or the local mosque. Afterward, it is customary to embrace and wish each other Eid Mubarak, which translates as “have a blessed Eid,” give gifts to children, and visit friends and relatives.

One of the central rituals on Eid al-Adha is “Qurbani”, the act of sacrificing a sheep, goat, or cow. The meat is then divided between family, friends, and the poor. Other Muslims give money to charity to give poorer families the chance to have a proper Eid feast.

Eid ul-Adha has a celebratory character, and the day may be rounded off by visiting funfairs or festivals held for the occasion in some British cities.

Eid ul-Adha Food

In contrast to Eid ul-Fitr, which is nicknamed the “Sweet Eid” for its variety of sweet dishes, Eid ul-Adha is often called the “Salty Eid” because the feast includes mainly savoury food.

Popular dishes include Kebab (boneless cooked meat), Haleem (a stew usually made from meat, wheat, and lentils), and Biryani (a spicy meat and rice dish originally from India). The meal is usually rounded off by a sweet dessert, featuring cakes, biscuits, or sweet pastries like Turkish baklava.

The Hajj – and its connection with Eid ul Adha

Why Us Shipleys Tax Advisors

Muslims celebrate Eid ul-Adha on the last day of the Hajj. The Hajj is pilgrimage to Makkah in Saudi Arabia. It occurs every year and is the Fifth Pillar of Islam (and therefore very important).

All Muslims who are fit and able to travel should make the visit to Makkah at least once in their lives.

During the Hajj the pilgrims perform acts of worship and renew their faith and sense of purpose in the world.

This year it was reported around 2.5 million Muslims from all over the world visited Makkah for Hajj.

The Ka’bah

The Ka’bah (black cube) is the most important monument in Islam. Pilgrims walk around the Ka’bah seven times and many of them try to touch the Black Stone (deemed to be a stone from heaven) located at the corner. Contrary to popular belief, muslims do not worship the Ka’bah, nor does it actually house God, it is a symbol of faith and unity. The Kaba is the direction of their prayer, not the object of it. This misconception stems from the fact that Muslims are seen bowing and prostrating in front of the Kaba in pictures. 

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