Month: December 2023

Tax Efficiency and Care Homes: A Guide to Capital Allowances

The centre piece of the Autumn Statement was on full expensing policy. Initially introduced on a temporary basis in the Spring Budget of 2023, the policy was made permanent in the Autumn Statement.

Full Expensing allows companies subject to UK corporation tax to secure a 100% allowance when purchasing qualifying plant and machinery which is new and unused. It is a tax saving measure for many companies because the entire expenditure on the plant and machinery can be fully deducted from the company’s corporation tax bill. Notably, there is no upper limit on the cost of the eligible plant or machinery – so the more a company invests in equipment, the more it can deduct from its corporation tax liability.

For items which do not qualify for a 100% allowance, a 50% first-year allowance is available for expenditure on new special rate (including long life) assets, some of which are listed below.

However, businesses should beware that the Treasury will recoup the saving if the company disposes of the asset. For instance, if a company purchases a new item of machinery and deducts 100% of the cost from its corporation tax bill, and subsequently sells the asset for £20,000, it is obliged to incorporate £20,000 back into its taxable profits.

In our experience, full expensing, and other available capital allowance claims for care homes are frequently underestimated. This leads to businesses missing out on significant tax savings.

In this piece we consider how full expensing, and 50% first year capital allowance, can be used in the care home setting and the types of qualifying plant and machinery which could be eligible under the scheme.

Unfortunately, there is no list of what counts as qualifying plant and machinery and therefore it can be a time consuming exercise to identify which expenditure is eligible under the capital allowances regime. We know that many specialist items can be qualifying items but there are also ordinary items of expenditures which are not unique to care homes but are often overlooked, including:

  • Fixtures such as bathroom suites or kitchens;
  • Lifts;
  • Water and heating systems;
  • Hot and cold water systems;
  • Air conditioning units;
  • Lighting systems;
  • Electrical systems; and
  • Fire alarm and CCTV systems.

Within a care home settings there is specialist health and care equipment which also qualify, including:

  • Patient lifts and hoists;
  • Rehabilitation equipment;
  • Specialised beds and mattresses;
  • Safety equipment;
  • Medical gas systems; and
  • Alterations within buildings to install equipment.

These examples represent a range of specialist equipment that plays a crucial role in the care and well-being of residents in a care home setting.

There are several benefits to making sure your business makes a valid claim under the full expensing scheme or indeed other types of capital allowance scheme. Firstly there is an immediate ability to deduct your expenditure on the qualifying item from your corporation tax bill, contributing to overall tax efficiency. Additionally, ensuring that you properly account for your expenditure in your accounts is an important part of having a compliant tax return which stands up to scrutiny by the tax authorities.

Fearn v Tate named as top property case of 2023 by EG

In their countdown of top 10 property law cases of 2023 EG awarded the Christmas number 1 spot to Fearn v Tate, calling it one of the most high-profile cases of the century.

Natasha Rees, Senior Partner at Forsters, was the lead lawyer advising the leaseholders, working with Tom Weekes KC and Richard Moules of Landmark Chambers.

Read more about the case, and Forsters’ involvement here and here.

Listen to the EG Property Podcast – top 10 property law cases of 2023 here.

Outside the Box: An Occupier Perspective

In the fourth episode of our Outside the Box podcast, we focus on the occupational requirements within the industrial and logistics sector. How has occupier demand changed during 2023 and, with an increasingly diverse occupier mix, is the industrial and logistics sector addressing the needs of occupiers? Paul Grayson, Senior Associate at Fosters chats to Tom Shaw, Director in the industrial and logistics occupier advisory team at Savills.

Learn more about and contact our industrial and logistics team.

In this episode

  • Paul Grayson, Senior Associate
  • Tom Shaw, Director SE Industrial, Savills

Previous episodes:

Listen to more episodes and subscribe

You can listen to more episodes of the More Than Law podcast here on our website, as well as subscribe on your favourite podcast services, including SoundCloud iTunes/Apple Podcasts Spotify

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The overriding concern of the industry is that the government’s proposals will lead to even less housing being delivered – Victoria Du Croz quoted in the Financial Times

Planning Partner, Victoria Du Croz, has been quoted in the FT article entitled “Michael Gove insists he has not ‘abandoned’ local housing targets.”

Speaking on Tuesday 19 December, as the revised National Planning Policy Framework (NPPF) was published, Michael Gove said that local authorities will be given three months to deliver housing plans or face losing planning powers.

In the article, in which housing and property industry groups responded to Gove’s speech, Victoria du Croz, partner at Forsters said “The overriding concern of the industry is that the government’s proposals will lead to even less housing being delivered. The government has produced no convincing evidence to demonstrate how their reforms will deliver more housing.”

To read the full article (behind a paywall) please click here.

Forsters advises Fiera Real Estate UK and Wrenbridge on the acquisition of an urban logistics development site in Waltham Cross

Forsters has advised Fiera Real Estate (“Fiera”) and Wrenbridge on the acquisition of a 2.6-acre site in Waltham Cross for the proposed development of a new 60,473 sq.ft. urban logistics scheme with a GDV of £25m.

The site was purchased through the Fiera Real Estate Logistics Development Fund UK (“FRELD”). All assets in FRELD’s portfolio will meet the rigorous environmental and social requirements set out by FRE UK’s Sustainable Design Brief, which align with its ambition to drive positive change and contribute to a low carbon economy. The scheme will have ESG considerations embedded at all stages of its design process and along with future projects for the fund, it will be targeting net-zero carbon construction, BREEAM Excellent and EPC A.

The site is situated off Britannia Road in Waltham Cross, which is a prime industrial location and two miles from junction 25 of the M25.

Chris Button, Head of Investment Management, UK at Fiera, said, “We are delighted to complete the acquisition of this prime logistics site in joint venture with leading developers Wrenbridge and ably advised, as always, by the magnificent team at Forsters.”

Harry Gibson, Associate Director at Wrenbridge, added: “This is our third deal locally and we look forward to preparing a planning application in the new year to be on site as soon as possible.”

Commercial Real Estate Partner, Jade Metcalf, led on the purchase, assisted by Senior Associates, Alexandra Ringrose and Daniel Steele, and Planning Associate, Sophie Smith. Property Litigation Partner, Ben Barrison, also advised on the deal.

Public Rights of Way: How to keep the curtains open without seeing dog walkers!

When purchasing a property, it is important to ensure you are fully aware of any public rights of way crossing the property or near to it.

Those seeking peace and quiet in their new home will often want to ensure they are not besieged by local ramblers on the warpath.

Public rights can be divided into four categories

  1. Footpaths (people on foot only)
  2. Bridleways (people on foot, cyclists and horse riders)
  3. Restricted byways (people on foot, cyclists, horse riders and any other transport without a motor)
  4. Byways open to all traffic (people on foot, cyclists, horse riders, cars and any other transport with a motor)

There are exceptions for people in mobility scooters and powered wheelchairs.

A local authority and highways search obtained as part of the due diligence when purchasing a property should reveal any public rights of way crossing or abutting the Property. However, your solicitor should also enquire of the seller whether they are aware of any applications or pending submissions to add any public right of way to the definitive map or extend an existing public right of way which would abut and/or cross the Property.

The highways search will only reveal rights of way that are recorded as public rights of way at the date of the search result. Where a public right of way is shown on the local authority’s definitive map, that is conclusive evidence that it exists. However, definitive maps can be incomplete or not up to date which means that they are not conclusive evidence that no public right of way exists.

There are different ways in which new public rights can be created including (1) by express grant, (2) by order of a public authority, (3) dedication by the landowner and (4) presumed dedication.

Presumed dedication arises where the public at large have used a defined route for a 20 year period without permission from the landowner. Creating rights of way under presumed dedication is something that any purchaser should be mindful of when purchasing a property. Whilst the burden of proof is high for presumed dedication your solicitor should raise enquiries of the seller to determine if there has been any activity which could amount to presumed dedication.

What can you do to ensure the privacy of your home?

It is possible to:

  1. Deposit a landowner statement under section 31(6) of the Highways Act 1980 with a map marking any ways across the property that the owner accepts are public rights of way and includes a declaration that the landowner does not intend to dedicate any new public rights of way across their property. This will “stop the clock” on the 20 year period and (unless the public can provide evidence to the contrary) any use of the property by members of the public during this period should prevent against new rights of way being established.
  2. Apply to divert footpaths, bridleways and restricted byways provided certain requirements are met including that the diverted route is not substantially less convenient to the public. However, this can be a costly and drawn-out process especially if objections are raised. You should always get the right advice and, to avoid objections, ensure that any diversion benefits not only you but also members of the public.

Forsters can assist you with both these options and provide advice on public rights of way that currently affect your property or may affect a future property you are interested in purchasing.

Following a purchase, we always advise our clients to take active steps to ensure that no new rights of way are acquired which may include ensuring your boundaries are fenced, any gates specify that there is no public access, and you remain vigilant as to any members of the public gaining access to the Property.

Film Studios: Peering Through the Letterbox

Podcast host Louise Irvine, and Owen Spencer, Counsel in Forsters’ Studios Group, were joined by Simon Calvert of CBRE to discuss film studio real estate.

The trio peer through the letterbox on the sector and give insights into the latest trends and likely developments in the film studio sector.

In this episode we were joined by:

  • Simon Calvert, Senior Director at CBRE
  • Owen Spencer, Counsel in Forsters’ Studios Group
  • Louise Irvine, Senior Knowledge Development Lawyer in our Commercial Real Estate team

Listen to more episodes and subscribe

You can listen to more episodes of the More Than Law podcast here on our website, as well as subscribe on your favourite podcast services, including SoundCloud, iTunes/Apple Podcasts, Spotify and TuneIn.

To continue the conversation on social media, use #MoreThanLawPodcast.

“Family Wars – lessons to be learned from conflicts” The Royal Gazette covers Nick Jacob’s STEP seminar

Private Client Partner, Nick Jacob, was invited to present a session at the recent STEP Bermuda Conference 2023. His session, entitled ‘Family Wars – lessons to be learned from conflicts’ has since been covered in an article by The Royal Gazette.

“No matter how big your business empire, or how tight your grip on it, you need a will and a succession plan. This was the sage advice from Nick Jacob” writes the editor.

The article highlights Nick’s top tips to avoid family conflict:

  • Facing up to potential conflict issues before they become real conflicts is absolutely critical.
  • Getting everybody in the family to buy in to the structuring and to understand why it has been set up is important.
  • Trust professionals must ensure that the structures they set up are not too complicated to understand.
  • Advisors need to think about whether what we are advising is right for the client. Are the structures going to work for that family, and are they dynamic enough to change in the future?

The full article can be read here.

Parliamentary Launch of Resolution’s Vision for Family Justice: A Focus on Cohabitation Reform

On Monday 27 November, Resolution hosted the launch of their Vision for Family Justice in Parliament.

The Vision, which sets out Resolution’s five key recommendations to improve family law/the family justice system, will provide a blueprint for Resolution’s campaigning activity ahead of the next general election and beyond. The Parliamentary launch focused on Resolution’s primary aspiration: to reform the law on cohabitation.

Jo Edwards, Chair of Resolution’s Family Law Reform Committee and Head of Family at Forsters, spoke at the launch about Resolution’s objective to provide a safety net for cohabiting couples on relationship breakdown or the death of their partner. Resolution’s polling ahead of its annual Awareness Week, which ran from 27 November to 1 December, found that 74% of cohabitees agree that ‘the current laws surrounding cohabitation are unfit for today’s modern society’. It also showed that 59% of the population believe cohabiting couples should have better legal protection (with a further 13% being undecided, rather than opposed).

The dramatic increase in cohabiting couples in the UK (over a 25-year period to 2021 there was a 144% increase, and cohabiting couples now represent around 1 in 5 families), makes unmarried couples the fastest growing relationship type in the UK. It was found in Resolution’s polling that 83% of the population expect these numbers to increase in the next decade. This huge growth in the numbers, coupled with people believing they are automatically protected as common law spouses (as Resolution’s polling showed), makes the lack of legal protection for cohabiting couples particularly concerning.

At the Parliamentary launch, both Grant Cameron (current Resolution National Chair) and Jo Edwards emphasised the need for cohabitation reform and the risk of England and Wales remaining a “curious outlier” if there is failure to implement change. She called for Parliamentarians and officials to work with Resolution to change the law on cohabitation to fit the needs of modern families.

Emily Thornberry, Shadow Attorney General, followed Jo Edwards in championing the need for cohabitation reform, acknowledging that the law as it stands is “extraordinarily unfair”. Married couples and civil partners are entitled to a fair and equitable settlement, but the law leaves no such protection for cohabitees. She emphasised that women are often, but not exclusively, the ones left disadvantaged at the end of a cohabiting relationship.

Ms Thornberry confirmed the Labour Party’s commitment to reforming the law for cohabiting couples. She expressed a desire to make this a cross-party initiative, in order to achieve change.

Siobhan Baillie, MP for Stroud, closed the speeches by committing to cross-party support for cohabitation reform, stating that she “warmly welcomes working together”. She concluded that there is plenty of evidence to support reform.

Forsters’ Family team supports Resolution’s reaffirmed commitment to cohabitation reform.

To read articles on the five key recommendations in Resolution’s Vision for Family Justice, see here:

Navigating the Evolving Landscape of Energy Efficiency Regulations in Real Estate

Listen in as we uncover the intricacies of global real estate decisions impacted by changing regulations with Edward Glass.

We explore critical topics such as minimum energy efficiency standards, energy performance certificates, and the rise of green lease clauses. Edward has been tracking the E in ESG closely since 2013-14, and his expertise shines as he discusses the change in the industry that EPC regulations have instigated and how Forsters is dedicated to sustainability.

We venture further into the financial implications of current and future regulations on real estate investments, emphasising the potential costs and risks for asset owners. We tackle the important question of how landlords should approach energy performance certificates, particularly with the looming necessity of capital expenditure to upgrade buildings to comply with future regulations. Listen in as we analyse the proposed uplift in minimum energy standards, its potential impact on the UK real estate, and strategies for budgeting for OPEX costs.

The episode concludes with an insightful look into the changing landscape of green lease clauses, data sharing, and its enforceability. Edward shares his observations on the evolving narrative for both landlords and tenants and key considerations when drafting leases. We discuss innovative approaches like the Chancery Lane Project, the challenges of enforcing sustainability clauses in the commercial sector, and the importance of a strong landlord-tenant relationship in the residential sector. So, tune in and equip yourself with knowledge about the changing regulations in real estate, whether you are a landlord, tenant, or investor.

  • Energy Efficiency Standards and Green Lease
  • Implications of Energy Performance Certificates
  • Changing Green Lease Clauses Landscape
  • Green Lease Clauses and Data Sharing


This podcast was recorded and first published by LifeProven. Read more here.

Resolution’s Fifth Vision: ‘Making Family Law Fit for Purpose’

To celebrate Resolution’s 40th Anniversary, the organisation is using Awareness Week (27 November – 1 December) to launch their Vision for Family Justice. These recommendations from family justice professionals set out how the legal system can be improved to fit the needs of modern families. The fifth vision on Resolution’s agenda is ‘Making Family Law Fit for Purpose’.

Child arrangements on separation and divorce

One recommendation is for there to be a statutory requirement to hear the voice of the child at the first hearing in child arrangement proceedings. It was found in Resolution’s polling survey that 71% of people agreed that this recommendation “will help to overcome bias of the main carer”. The centrality of the child’s voice in proceedings is paramount and building a framework around this should be a key focus for future reform in the family justice system.

From April to June 2023, it was found that on average it took 47 weeks for private law cases to reach a final order (more than double the time taken in 2016). Delay can be damaging for the child and so Resolution has recommended a statutory time limit on child arrangement proceedings. They also advocate for streamlining cases by calling for early proactive management from experienced judges or an early and effective triage hearing.

Financial remedies on divorce

In the case of spousal maintenance, Resolution has recommended that the law, in the normal course of events, should make clear that it will be for a fixed term to avoid parties returning to court. However, this should not be limited in a way which would cause hardship to the financially weaker party.

Cases where assets exceed the parties’ needs, and where they were received by way of a gift or inheritance during the marriage, or acquired after the marriage, should be non-matrimonial property. Resolution sets out the instances where such a principle should not apply, for example, where that property is required to meet needs.

International cases

Since the UK’s departure from the EU, costs, delays and complexity for those divorcing, claiming maintenance and for international child cases have increased. There have been conflicting decisions for international families with connections to the UK and an EU member state, and also gaps left in domestic legislation.

Resolution champions the simplification of the legal framework in private family law cases between England and Wales, Northern Ireland and Scotland and calls for support from the EU to allow UK accession to the Lugano Convention.

Forsters’ Family practice supports Resolution’s proposal to improve the operation of the family justice system and calls on Parliament to facilitate making family law fit for purpose.

To see Resolution’s other recommendations, follow the links to our summary articles:

  • Cohabitation reform (find the link to our summary article here).
  • Helping families to find solutions (find the link to our summary article here).
  • Protecting the Vulnerable (find the link to our summary article here).
  • Ensuring the family courts meet the needs of families (find the link to our summary article here).