Property Investments
Braemer Wealth Management specialises in the development and marketing of Alternative
Investment opportunities for those investors who seek to diversify their portfolio with a
range of unique, Inland Revenue approved propositions - a typical alternative investment
which we are currently offering to our clients is an opportunity to invest into property
with the additional benefit of a tax rebate of up to 40% of funds introduced.
- The proposition
-
A Partnership is formed enables investors to invest in buy-to-let property, while
claiming tax relief for their investment against their income. The tax relief is
achieved by the Partnership buying vacant space above shops and commercial premises and
renovating or converting that space into affordable housing. The Partnership funds the
acquisition of property with loans and uses investors' money to improve the property,
allowing investors to reclaim income tax on the value of the development cost with an
estimated net rebate up to 40% of the funds introduced.
- Qualifying Expenditure
-
The proposition allows a claim for flat conversion allowances in respect of capital
expenditure incurred in renovating Qualifying Property to make Qualifying Flats for
letting. Examples of capital expenditure are the costs of dividing a single property to
create a number of separate flats, or the costs of building a separate entrance.
- Qualifying Properties and Renovation
-
The proposition was designed to focus on the redevelopment of properties in traditional
city centre shopping areas. In order to be a Qualifying Building, the property must have
been built before 1980, have no more than 4 storeys above the ground floor, which must
remaiwn authorised for business use. The upper floors must have been either unoccupied,
or used only for storage, for at least 1 year before the conversion work starts. It is
the upper floors (the Qualifying Property) which are converted or renovated to create
Qualifying Flats. In order to avoid claw-back of the relief, the Qualifying Flats must
be retained by the Partnership for 7 years after the conversion work is complete.
The Partnership is structured to achieve tax transparency and limited liability for its
members with the aim to deliver to investors up to 40% tax rebate on their full initial
investment during the first three years. This will be achieved through externally
financing properties, by approximately 75%, once they are refurbished and matching the
initial investment capital in the Partnership with Qualifying Expenditure. Following
the initial 3-year development period during which the Partnership's portfolio will be
constructed, any remaining capital may be returned to partners in advance of the
mandatory 7-year holding period. Therefore the life of the Partnership is expected to be
8-10 years.
If you would like to discuss our range of alternative investments, please contact us. |
