Investors in commercial property ventures designed to benefit from generous tax reliefs will be subject to new measures to reclaim unpaid tax.
In one case investors in a partnership to redevelop a Glasgow hotel are set to receive a demand from the HMRC to repay tax reliefs that were granted under the Business Premises Renovation Allowances (BPRA) scheme.
The accelerated payment notices, which must be settled within 90 days, will land on the door-steps of Charlotte House LLP investors in mid-January.
Tax return data for 2011-12 revealed that the £95m cost of the BPRA was three times higher than expected. Where investments were highly leveraged and tax relief claimed n the total investment, investors received cash benefits far greater than their cash investment in the project.
FT Weekend, M3
