Real Estate Finance and Investment

This Practice note has been superseded by the section on Accounting for leases in Practice note, Equipment leasing: tax. An update page summarising the activities and decisions of the joint IASB and FASB project on accounting for leases is available on the FASB website: IASB/FASB: Leases - Project Update.

This Practice note provides an overview of the money laundering regime that applies to lawyers pursuant to the Money Laundering Regulations 2007 (2007 Regulations). The 2007 Regulations came into force on 15 December 2007 and replace the Money Laundering Regulations 2003 (2003 Regulations). They bring the 2005 Directive on money laundering into effect in the UK. The 2007 Regulations introduce new requirements and vary requirements that were in the 2003 Regulations. In particular, the 2007 Regulations require that: The lawyer is able to identify the beneficial owner of client trusts, companies and partnerships. The lawyer applies customer due diligence measures and monitors client activities according to a risk-based approach, applying less stringent procedures for low risk situations and more stringent procedures in higher risk situations. Training for staff is both regular and covers terrorist financing issues. Lawyers are also to have regard to the Law Society's anti-money laundering practice note published on 6 October 2011, and the Solicitors Regulation Authority's warning cards on money laundering (April 2009), property fraud (April 2009) and bogus law firms and identity theft (March 2012).   Property lawyers should also take account of the joint Land Registry and Law Society practice note on property and registration fraud (September 2010), and the Law Society's note on mortgage fraud (October 2011).

A practice note discussing charging orders over land, how to protect them, priority issues and the effect of insolvency and other security on their enforceability.

A note on some of the issues that may arise in finance transactions where lenders and/or borrowers are required to participate in the CRC Energy Efficiency Scheme.

A summary of the various enhanced capital allowance (ECA) schemes aimed at promoting environmental measures.

Overview of the key legal requirements relating to the execution of deeds and documents under the laws of England and Wales. It reflects the law on execution from 1 October 2009. For details of the law governing execution of deeds and documents before 1 October 2009, see Practice note, Execution of deeds and documents: pre-1 October 2009.

Many commercial property transactions are, potentially, liable to direct and indirect taxes. This practice note considers the tax treatment where a corporate taxpayer holds an interest in property.

This note is a general summary of the rules for calculating income for the purposes of UK income tax. It also provides links to notes describing other aspects of the UK income tax rules, such as how income is taxed and exemptions from income tax.

This note is a general summary of the principles underpinning UK income tax. It describes what income is and how it is taxed. It also provides links to notes describing other aspects of the UK income tax rules, such as calculation of income and exemptions from income tax.

A note on whether a Law of Property Act (LPA) receiver can transfer property when the appointing bank has subsequently gone into administration.

This practice note examines the various tax issues that arise in respect of investment trusts, including the conditions that must be satisfied to attain investment trust status and the consequences of doing so.

This note summarises the main tax issues to consider when establishing, operating and terminating a UK-based joint venture company.

A note on land banking.

Many commercial property transactions are, potentially, liable to direct and indirect taxes. This practice note considers the tax treatment of leases.

This note gives an overview of the matters to be considered when requesting or responding to a request for an English legal opinion, the form and content of an English legal opinion and the practical steps to be taken when providing an English legal opinion. The note also links to detailed notes on the purpose and structure of legal opinions in finance transactions in the United States, including the purpose and structure of legal opinions delivered in securities offerings in the United States.

This practice note examines the various tax issues that arise in relation to limited partnerships, including the tax treatment of partners and the tax consequences of changes in limited partnership interests.

An overview of mortgages and charges over land (also known as real estate or property). This note describes the types of security that can be created or arise over property, the form and contents of a typical mortgage or fixed charge over property, due diligence and pre-completion issues, potential challenges to security, how security over property is released and a lender's remedies under a mortgage or charge over property.

This practice note examines the various tax issues that arise in respect of offshore companies and offshore unauthorised unit trusts. It also provides a summary of the main UK anti-avoidance provisions that need to be considered in relation to the tax treatment of UK investors investing in offshore funds.

An overview of the main tax issues to consider when setting up a partnership in England and Wales.

This note looks at the enforcement powers available to collecting authorities in relation to outstanding Community Infrastructure Levy (CIL) debts and breaches of payment.  

This note looks at the consultation and examination procedure for the charging schedule that sets out the Community Infrastructure Levy (CIL) rates in a charging authority's area.

An overview of the direct tax regime for property authorised investment funds.

This note provides an overview of property derivatives.

This Practice note focuses on: The rule that there cannot be a clog on the equity of redemption. The rules that collateral advantages may be unenforceable.

A summary of the main types of agreement that fall within the scope of the Consumer Credit Act 1974 (CCA), and other key priorities of the CCA that people involved with the provision of consumer credit need to be aware of.

An overview of materials on Stamp Duty Land Tax.

A note on the rates of SDLT on land transactions and the historic rates of stamp duty applicable to transfers of property other than shares.

The Solicitors' Code of Conduct 2007 (the Code) came into force on 1 July 2007. The Code replaced, with effect from 1 July 2007, the rules of professional conduct contained in the Solicitors' Practice Rules 1990 (SPR). The Code applies to all solicitors acting in England and Wales. This Practice Note deals with the situation of a solicitor acting for a lender and a borrower in a conveyancing transaction. Rule 3.16 of the Code replaces Rule 6(3) of the SPR, which provides that, as a general rule, a solicitor cannot act for both the lender and borrower on the grant of a mortgage of land. Where the mortgage is a "standard mortgage", however, joint representation is permitted, subject to there being no conflict of interest and to certain conditions being complied with. Note: The Solicitors Regulation Authority (SRA) Handbook, which is fully in force from 6 October 2011, replaces the Solicitors' Code of Conduct 2007. PLC has published the following Practice notes on the new handbook: SRA Handbook 2011 and Code of Conduct. SRA Handbook 2011 and Code of Conduct: issues for property lawyers. SRA Handbook: ten top things for in-house lawyers to think about.

This note examines the general principles of subordination, the different methods by which it can be achieved and its advantages both to borrowers and lenders. This note also contains links to a multi-jurisdictional guide to finance (which includes issues relating to subordination) and a detailed note on subordination in the United States.

A note on taking security over choses in action.  A chose in action is an asset that can only be claimed or enforced by action at law or equity, rather than by taking physical possession of the asset. The note looks at how to take security over various types of choses in action such as rights under contracts, debts, financial instruments and cash deposits in bank accounts.

This note looks at taking, perfecting, registering and enforcing security over land in Scotland. It also considers the impact of the reforms to the Scottish system of land registration.

This practice note is a basic summary of the tax issues that frequently arise in respect of commercial lending transactions carried on by banks. Among other things, it considers distribution treatment for interest, withholding tax, stamp duty and VAT.

Practice note on the effect of a tenant's insolvency on its landlord's ability to distrain or sue for rent or to forfeit the lease.

A practice note discussing the differences between properties that are subject to an option to tax and those that are not and how this will influence how you should deal with a property, including how to account for VAT.

A practice note looking at how to exercise an option to tax and notify it to HMRC, including who should opt and whether HMRC permission is required.

A practice note looking at the physical scope of the option to tax, who it affects and the person opting.

This practice note sets out answers to some of the key questions on the UK REITs regime.

Value added tax (VAT) is a tax on supplies of goods and services made by a taxable person in the course or furtherance of a business. It is administered by HM Revenue & Customs. This note covers the VAT position on standard-rated supplies, exempt supplies, zero-rated supplies and supplies that are outside the scope of VAT.

A short practice note which explains the tax point of a supply for value added tax purposes in relation to property transactions.

The option to tax (previously referred to as the "election to waive exemption from VAT") plays an important role in property investments and transactions. This practice note sets out when an option can be exercised, the rules governing options and the effect of an option.

This practice note is a summary of the UK withholding tax rules on payments of interest and certain other payments (such as annual payments, guarantee payments, patent royalties and other royalties). It considers when withholding arises (including when interest has a UK source and when it is "yearly interest" rather than "short interest"). It also considers exemptions, such as the Quoted eurobond exemption and exemption under double tax treaties, and outlines the effect of the EU savings tax directive. Further, it discusses documenting for withholding tax, including gross-up clauses, and accounting for tax withheld.