Corporate and Private Client eNews

The latest edition of our Corporate and Private Client eNews is now available and covers the following topics:

  • haysmacintyre’s new Managing Partner
  • Government pulls plug on PiCG
  • Property register progresses
  • Digital reporting delayed by a year
  • IOD looks to improve innovation
  • Government delays minimum tax rate
  • FRC updates Strategic Report guidance
  • And finally… low MTD awareness

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IPSX – A new way to invest in real estate

What is IPSX?

The International Properties Security Exchange (IPSX) is the world’s first regulated stock exchange that is wholly dedicated to commercial real estate assets. haysmacintyre is proud to have acted as reporting accountants to one of the first companies to have been listed on IPSX.

IPSX intends to transform real estate investment, facilitating direct investment in commercial property via a public market, and providing flexibility and liquidity for both real estate owners and investors. Historically, real estate investment has been based on investing in listed property companies with multiple assets where the investor is forced to invest indirectly in the entire portfolio rather than specific asset or assets.

IPSX markets

IPSX received Financial Conduct Authority (FCA) approval in 2019, becoming the first recognised investment exchange market to open in the UK in almost ten years.

IPSX operate two markets: IPSX Prime and IPSX Wholesale. IPSX Prime is included in the Financial Services Register as a regulated market, whilst IPSX Wholesale is included in the Data Reporting Services Providers (DRSP), Multilateral Trading Facility (MTF), Organised Trading Facilities (OTF) and Source Index (SI) Register. IPSX is regulated by the FCA which provides protection for investors.

IPSX Prime is the principal market for Initial Public Offering (IPO) of shares in a company owning single (or a small group of similar) commercial property assets, offering a source of capital in a regulated market.

IPSX Wholesale is focused on providing real estate owners with an onshore market to accommodate a variety of corporate structures in a flexible regulatory environment. In addition to stabilised assets, IPSX Wholesale allows real estate owners intending to develop, redevelop or repurpose access to funding, provided that within five years the asset is expected to become stabilised and income-generating.

For IPSX Prime and Wholesale, assets must generally have a minimum market value of £50 million with the maximum loan-to-value of IPSX Prime being 40%, compared to 80% for IPSX Wholesale.

Opportunities of IPSX

The IPSX Prime market allows retail, individual or non-professional investors to purchase shares in single market assets, thus allowing these investors to access a previously restricted commercial real estate market. Real estate has historically been an investment option limited to large investors acquiring whole properties, with restricted access to smaller investors.

On the other hand, IPSX Wholesale restricts investment to professional investors. Existing companies listed on IPSX Wholesale have shareholders ranging from domestic institutions to high-net-worth individuals and international funds.

For asset owners and developers, an IPSX listing offers an alternative to a sale process. On offering, a proportion of the shares are listed, and the remaining are retained by the existing owner. For IPSX Prime, 25% of shares must be ‘free-float’ (i.e. in public hands) but for IPSX Wholesale less than a 10% free-float is possible, subject to meeting certain criteria. This creates an immediate financing option for the asset owner, whilst maintaining significant control of the asset. Further to this, IPSX allows industrial owner-occupiers to list a portion of their asset rather than doing a sale-and-leaseback, avoiding them taking on long-term debt. Moreover, the owner-occupier maintains exposure to any future appreciation in the property value that they have retained.

REIT structure

For asset owners, IPSX companies are expected to qualify as Real Estate Investment Trusts (REITs) and benefit from the advantageous tax regime afforded to having REIT status. REITs mimic direct investment in UK property, and therefore avoid taxes that can otherwise occur when investing in a corporate structure.

  • Benefits of the REIT status include:
  • Exemption from Corporation Tax, on both gains on sales of investment properties and shares in property investment companies
  • Attracting international capital with there being significant investment pools designated for investment in REITs
  • Lower transaction costs and less stamp duty on purchase of shares compared to stamp duty land tax on a property purchase

There are however significant factors and requirements to consider before deciding whether REIT status is appropriate for a company, such as the requirement for a REIT to distribute 90% or more of its tax-exempt income profits as well as the costs of complying with REIT status.

haysmacintyre are specialist service providers to the International Properties Security Exchange and are actively involved in the IPSX community. We work as the reporting accountant during IPOs to IPSX and audit entities listed on the IPSX market.

Corporate and Private Client eNews

The latest edition of our Corporate and Private Client eNews is now available and covers the following topics:

  • Government to overhaul audit market
  • HMRC pauses on some R&D repayments
  • FRC reports on discounting
  • Share sale proceeds under scrutiny
  • CCAB updates money laundering guidance
  • HMRC target umbrella company fraud
  • IFRS 17 adopted by UKEB
  • Fraudulent SDLT claim
  • No changes to FRS 101
  • FCA looks to improve UK listing attractiveness
  • FRC illustrates good practice
  • And finally… cessation of interactive P11Ds

Click the button below to download this week’s edition, or read our previous editions here.

 

Corporate and Private Client eNews

The latest edition of our Corporate and Private Client eNews is now available and covers the following topics:

  • Points mean penalties
  • Accountants to be banned form Russian work
  • Increase in tax interest charge
  • Capital allowance regime under review
  • Penalties on non-resident tax promoters
  • You are not alone
  • RJA pushes for rates reform
  • FRC Lab’s report on the supply chain
  • TPR targeting suspects
  • Audit reform confirmed
  • Moscow Stock Exchange loses status
  • and finally… quick on the filing

Click the button below to download this week’s edition, or read our previous editions here.

 

Marketing Manager – Services

Marketing

  • End to end management for in-person, virtual and hybrid events
  • Research, negotiate and manage key sponsorships
    • Leverage key sponsorships which provide access to our target markets
    • Leverage events to create opportunities for relationship development/sales dialogue
    • Alongside the Marketing Managers and Head of Marketing and Business Development, create an evaluation matrix for sponsorships and apply for all relevant sponsorships
  • Responsible for the management of target lists. Ensure information is up to date with a clear action plan in place.
  • Marketing representative for service line meetings
  • Pitch relevant and topical themes for the events and communication schedule
  • Liaise with the Marketing team to ensure communications and events are executed to plan
  • Produce ROI reports for all events and communications, which are aligned to the strategy
  • Working with the Marketing Managers and Head of Marketing and Business Development, map out BD plans for the financial year
  • Budget management including an assessment of cost vs. benefit of all activity to ensure that resources are used in an efficient and effective manner
  • Supporting the Head of Marketing and Business Development on the overall marketing strategy.

Projects

  • Responsible for the service line client care programme
  • Campaign management:
    • End-to-end management of campaigns, including planning, preparations, launch and close
    • Budget management
    • Reporting on results and ROI
  • Management of the service lines key account programme
    • Working with the Head of Marketing and Business Development, implementation a plan to target the department’s key clients. Identify which are the most appropriate clients for growth and cross selling opportunities.

Bids

  • Evaluate the commercial viability of service line bid opportunities and make justified recommendations as to whether opportunities should be pursued.

Corporate and Private Client eNews

The latest edition of our Corporate and Private Client eNews is now available and covers the following topics:

  • LCCI finds a cautious outlook
  • Remuneration trust tax avoidance settlement
  • Challenged or challenger?
  • IR35: HMRC 1 Taxpayer 0 but still playing
  • FRC publishes an audit firm Governance Code
  • Lords criticise IR35
  • FRC finds shortfalls in slavery reporting
  • FRC consults on audit firm registrations
  • UK Trust Register
  • And finally… UKEB makes first adoption

Click the button below to download this week’s edition, or read our previous editions here.

 

Corporate and Private Client eNews

The latest edition of our Corporate and Private Client eNews is now available and covers the following topics:

  • FRC updates on accounting standards review
  • National Living and Minimum Wages increased
  • UKEB to review intangibles accounting
  • You can’t have your flapjack and eat it zero-rated!
  • FRC issues three-year plan
  • New proposed ISA 600 exposed
  • HMRC warns of tax avoidance schemes
  • RPDT commences
  • And finally… Time to Pay

Click the button below to download this week’s edition, or read our previous editions here.

 

Corporate and Private Client eNews

The latest edition of our Corporate and Private Client eNews is now available and covers the following topics:

  • Spring Statement
  • Interest rate on late tax payments increased
  • Former footballer found to be offside on tax
  • VAT rate increases for hospitality
  • Likely increase in IR35 compliance activity
  • Legal arbitration for COVID-19 rent disputes
  • Tax relief for home working
  • Mandatory climate related reporting commences
  • Licences subject to tax checks
  • And finally… MPs not confident over tax debt

Click the button below to download this week’s edition, or read our previous editions here.

 

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