13:20 PM, 29th September 2023, About 2 months ago
We are aware of a series of publications by Dan Neidle of Tax Policy Associates Limited to his website and his social media channels since 13 September 2023.
Our solicitors have sought advice from an independent Tier 1 Tax King’s Counsel to confirm the correctness of our approach. We anticipate making a summary of this advice available to mortgage lenders, our clients, and their professional advisers on request when it is finalised.
HMRC has been aware of our work for several years, and has subjected our work to many detailed checks without concern. We will of course be approaching HMRC in order to address any other concerns they may have.
We have been assisting landlords with structuring their property rental businesses since 2015.
We do not advise on the implementation of anything that could be described as a “scheme”.
Our paramount commitment is to provide outstanding service to our valued clients and meeting the stringent requirements set forth by our clients, their lenders, and HMRC. These entities hold us accountable, and our longstanding track record of ensuring their absolute satisfaction is a testament to our ongoing commitment.
There are many reasons for landlords to consider incorporation, of which taxation is just one.
The Substantial Incorporation Structure complies fully with legislation and HMRC manuals.
HMRC has made over 20 highly detailed bespoke compliance checks on rental property businesses we have assisted in incorporating, and each check has been closed in correspondence with no further tax due. These checks have included scrutiny of the transactional documentation by HMRC, and full narratives of the justification for tax reliefs claimed including where appropriate detailed analysis of the existence of a partnership. HMRC has never disallowed any claim for the tax reliefs in these cases.
We estimate that over 15,000 personal and corporate tax returns have been filed by our clients since the inception of our services.
We work with hundreds of our clients’ accountants and brokers in relation to these structures, and so many independent professional minds have considered the incorporation structures we have advised on.
The credit teams and legal counsel of several mortgage lenders have scrutinised our work and have been happy to extend further lending to our clients.
None of our clients’ lenders has ever called in a loan.
Many of our clients have gone on to arrange new financing in their company structure to complete the contracts substantially performed.
None of our clients’ insurers has ever declined a claim for the reasons suggested in the article.
None of the detriments forecast in Dan Neidle’s article has ever come to pass across this significant body of casework.
Details of our further action and the outcomes will be published in due course.