There is a general belief among solicitors and pension trustees that land and buildings transaction tax and the equivalent in England and Northern Ireland – stamp duty land tax, is payable on the purchase of all commercial properties.
Over the past 13 years many properties have been sold by people to their own pension schemes (SIPPs or SSAS’s) as an investment in situations where TAX is simply not due.
Tax has therefore been overpaid on thousands of these transactions. This is due to a lack of awareness of the intricacies of this tax, particularly exemptions relating to partnerships and the situations where a partnership exists where it may not be obvious that it does.
A typical overpayment situation is where a rented commercial property passes from multiple owners, into a single person self invested personal pension ( SIPP) or single/ multiple person small self- administered scheme (SSAS). Depending on the facts, either no tax is due or a much reduced amount is due since the owners of the commercial property are likely to be a general partnership in law with the result that the special exemption provisions relating to partnerships override the general rules.
*A partnership may also exist where a company or individual transfers its/ his or her property to a multiple person SSAS.
* Where a jointly owned property which has been rented is sold to a company owned by one or more of the owners.
* Where a general partnership, limited partnership or limited liability partnership transfer property to a partner’s pension scheme or indeed to a partner.
* Where a partner transfers property to a general partnership, limited partnership or limited liability partnership.
Refunds of tax have been obtained in many of these circumstances on behalf of SIPPs and SSASs and in others advance HMRC clearance has been obtained that no tax is due.
The above exemptions apply to both cash purchases and cases where property has been transferred as a pension contribution in specie
Acumen Tax are here to assist business owners, financial advisers, pension trustees, accountants and partnerships (including LP’s an LLPs) identify whether there may have been an overpayment of tax on the transfer of commercial property, establish whether the tax can be reclaimed within the time limits and where that isn’t the case, whether there is scope for a professional indemnity claim against the party responsible for making an incorrect return. We will work with appointed tax advisers and, where necessary, tax barristers to make any reclaim or establish a professional indemnity claim.
We also assist in obtaining prior clearance that no tax will be payable following specified transactions.
We work exclusively on a no-win / no-fee basis.
* Business Owners
* Financial Advisers
* Pension Trustees
* Partnerships (Including LP’s and LLPs)
Where they or their clients have entered into land and buildings transactions within the last 13 years with their/ their clients’ pension schemes, companies and/or partnerships (including LP’s and LLPs) where there is a commercial relationship between multiple parties either before the transaction or after.
Many pension administrators also act as pension trustees. One of the principal duties of a pension trustee is, at all times, to act in the best interests of the beneficiaries. Where a SIPP or SSAS has overpaid tax on a property transaction it is the duty of the pension trustees to seek redress. Many pension trustees are taking the view that they did not provide any advice in relation to tax on the property transaction and therefore they have no responsibilities.
Taking that view would be a mistake and inaction to recover overpaid tax will result in the pension trustees becoming culpable for that overpaid tax to the beneficiaries where they currently have no responsibility for the overpaid tax.
Acumen assist business owners, financial advisers, pension trustees, accountants and partnerships (including LP’s an LLPs) identify whether there may have been an overpayment of tax and establish whether the tax can be reclaimed within the time limits and, if not whether there is scope for a professional indemnity claim against the party responsible for making an incorrect return.
We can also obtain advance clearance that no tax or reduced tax will be liable on future transactions.
Acumen have retained experts in this field to act as tax experts and/or claims managers to
The fee is calculated on a no win no fee basis. Our fee for identifying, calculating and making the tax refund claim is 25% plus VAT of the tax recovered.Contact Us