Real Estate, Hospitality & Construction
Real Estate, Hospitality & Construction Tax services
The UK Real Estate market, particularly in London, is seeing a resurgence, fed by a desire to invest in bricks and mortar and the possibility of higher returns over other forms of investment.
Greater competition for transaction activity means investors must manage tax exposures carefully to protect overall returns. The increased global spotlight on tax avoidance means management of tax exposures and compliance burdens has become more important, but provides both opportunities, as well as risk, for businesses.
Our real estate tax team is at the forefront of advising UK and international clients on all forms of UK and European property investment exposures – from global real estate investment fund platforms to UK centric REITs – as well as property and infrastructure developers, corporate occupiers and private investors.
We advise at all stages of the property life cycle, covering:
- Tax advisory services
- Tax compliance services
- Tax assurance
- Stamp Duty & SDLT
- Capital Allowances
- Construction Industry Scheme.
We provide tax advice for:
- International Property Investment
Investors are increasingly looking to invest in real estate, not just in their own locale, but also as part of a global platform to take advantage of pricing opportunities, diversify their portfolios geographically, and enter new markets.
Our tax team are part of a highly experienced global network with a presence in all key jurisdictions of both investors and target property.
In the current ever-changing tax environment, a fully engaged and supportive tax team is vital, and we can provide this as part of a full range of services, from tax structuring, transaction support, tax and financial due diligence, and model reviews. We also work closely with our real estate finance team to source and work on deals.
Partner and UK&I Head of RHC Tax
+44 (0)20 7951 5947
- Real Estate Funds
The real estate fund market is returning to health, with numerous fund launches in progress. Core funds were the first to return, but core plus and opportunity are also making a comeback.
There is increased activity in the mezzanine (and senior) debt fund space, and EY has advised on some the largest of these recent launches, providing a robust operational structure.
We have significant practical experience advising real estate funds and their managers on all aspects of structuring, implementing, operating and winding up of funds.
We have frequently coordinated and project managed international assignments from our London office and have the experience to ensure all international issues are considered, and appropriate structures implemented for fund managers and carried interest.
+44 (0)20 7951 1886
- Real Estate Investment Trusts (REITs) and Listed Property Groups
EY has extensive experience advising the UK and overseas listed property sector, and has been at the forefront of supporting UK property groups with conversion to REIT status and life as a REIT.
We provide a full suite of tax advice, from tax compliance services to complex advisory services, including the listing process and REIT conversion.
We support clients in all areas of the transaction life cycle, including property acquisitions and disposals, re-financing and bond funding exercises, and M&A activity, and we give UK domiciled property groups international tax structuring advice.
We work with listed groups to ensure they efficiently manage their tax affairs.
We have worked, and continue to work, closely with industry bodies and Government to promote the UK listed sector and REITs in order to enhance the listed property sector’s profile both in the UK and globally.
+44 (0)20 7951 5795
- Property Authorised Investment Funds (PAIFs) and Authorised Property Funds
We have advised authorised funds over many years, and more recently been actively supporting a number of property fund managers to convert existing property investment funds to authorised and PAIF status.
In many cases the conversion to PAIF status requires a fund to first become authorised with the FCA, and may also involve extensive internal restructuring from a trust structure to an Open Ended Investment Company Structure. This can normally be done in a tax efficient manner, making use of various reorganisation and PAIF specific reliefs available under UK tax legislation.
In addition to these technical aspects, there are also practical changes to the management of the fund that need to be considered and built in to the fund management business’ operating systems, and we are perfectly placed to help with this.
EY has expertise in managing the tax affairs of authorised property investment funds and can help with the relevant tax compliance and reporting aspects.
+44 (0)20 7951 5795
- UK Property Authorised Investments Funds: Time for another look? 984K, December 2013
- Hospitality & Leisure
EY has extensive experience advising those connected with the hospitality industry and have a strong track record of providing tax advice.
We advise owners, operators, asset managers and/or lenders, and use our sector experience and understanding to align the management of tax risk and costs with commercial objectives.
Our range of services are tailored, but will often include:
- Ongoing tax advisory services considering the current business, its future strategy and its existing attributes;
- Tax compliance services for groups and joint ventures in the context of owner, operator and asset manager; and
- Buy and sell side advice on transactions, including tax due diligence, transaction structuring, post-acquisition integration and pre-transaction structure reviews.
+44 (0)20 7951 1886
- Corporate occupiers
Many UK trading groups operate either through their own UK real estate portfolio, or leased property. This will often represent a significant portion of the group’s balance sheet and annual cost base.
We support clients with simple and complex property transactions such as property acquisitions, disposals and the granting or surrender of leases, including due-diligence and transaction structuring.
We also help clients undertaking more complex property related activity, including sale and lease-back transactions, often working with other EY teams.
UK tax legislation in relation to property leases is complex, and often relatively similar transactions can provide very different tax results. We support clients by analysing these alternative scenarios in order to prevent unexpected tax consequences.
Development of property, and property refurbishment activities, have a number of complex tax implications, and we help clients with the structuring of property development activities for use in their business, which can mitigate future adverse tax consequences arising from disposal or change of use.
Partner and UK&I Head of RHC Tax
+44 (0)20 7951 5947
- Infrastructure and Government
Our Infrastructure and Government tax team has a strong track record providing tax advice across the infrastructure life cycle.
We help both public and private sector organisations develop and deliver large scale infrastructure projects across a range of sectors.
We use our sector experience and understanding to align the management of tax risk and costs with commercial objectives.
Our range of services is tailored, but will often include:
- Tax advice in relation to Government procurement of infrastructure projects in primary markets;
- Tax compliance services for groups, joint ventures and special purpose vehicles (SPVs) established for the delivery of infrastructure projects;
- Buy and sell side advice on secondary market transactions, including tax due diligence, transaction structuring and pre-transaction structure reviews;
- Working with Government and private sector counter-parties to develop proposals for changes in tax policy affecting infrastructure projects, and considering the tax consequences and treatment of new policies and delivery models for infrastructure projects.
+44 (0)161 333 2879
The extended Capital Gains Tax Regime
Anaylsis of the draft legislation of the extended CGT regime 75K, December 2014
The latest thought leadership, news and alerts relating to the Chancellor’s Autumn Statement and the Draft Finance Bill.
The Rt Hon George Osborne, UK Chancellor of the Exchequer, presented the UK Budget to the House of Commons on 19 March 2014. Read all our news and analysis of the Budget and Finance Bill.
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