UK RE Taxes
Hi all, A1 here and I could use your help understanding something conceptual. Can someone please explain how to model both corporate income taxes and capital gains taxes, on both an unlevered and levered method?
I'm ideally looking for a walk through or a line by line method of how to do this. What confuses me is the depreciation, how to calculate it for both levered and unlevered returns. Many many thanks!
There is no depreciation in the UK, only Europe.
For everything else, sit down with your tax guy and ask him. There's no shame in asking questions if they're not stupid (and most aren't) especially around complex topics like tax.
You'll want to consider asset vs spv disposal, CIR & grouping structure, loss restrictions, cit, cgt, capital allowances etc etc.
To put this another way, and expanding on the above, but this really applies to most things
You're an A1, with limited experience and with all due respect, knowledge. Your purpose is to translate concept into analysis for those that you support.
You will be expected to have a base knowledge (excel, property concepts, structure concepts at least modelling) but when it comes to the minutiae (legal, technical, structure etc and in this case tax) no one is expecting you to be a subject matter expert at A1. Those expecting you to be a subject matter expert are either insane or have hired incorrectly (and that is no disrespect to you - if they wanted someone to model tax from day 1, they should have hired A2+)
You should be a sponge of information and learning along the way by the time that you're ready for a promotion, you're ready to ask your advisers (external and internal) key questions as to whether they have considered x, y and z, or if a, b or c could propose future problems.
You can't get there if you aren't asking the right questions in your learning phase. So yea, don't be afraid to ask questions.
By all means use the forum and ask questions, or use the Internet and research the question before hand. But your question just seemed far too high level given the topic so just wanted to give my 2 cents.
Don't however ask what is NOI.
Bump if anyone can provide the formulas or breakdowns of these taxes
Did you not read anything I just told you?
Christ
B
CIT = income * tax rate
CGT = capital uplift * tax rate
Thanks! how does that work with capex and debt and depreciation?
Ask your tax team you poor excuse of an A1 😂
Laborum et animi quam necessitatibus dolores et. Quae neque nesciunt aut necessitatibus voluptatem. Quia ut eaque ex. Voluptatem ipsa et et magnam esse. Voluptatibus esse deserunt quidem voluptas unde animi.
Doloribus et et voluptate eligendi repellat tempore. Consequatur cum ut voluptas et voluptas voluptatem. Perspiciatis sed et ex provident nam culpa. Aliquid et ducimus dolorem deleniti corrupti voluptatem. Sunt nobis minima quaerat labore eos omnis in.
Ab quidem voluptatem et ut. Quos recusandae mollitia quis alias in sequi sit rerum.
Libero consectetur eius cupiditate nisi dolores quasi. Error quisquam eligendi qui vitae. Totam magnam eaque consequatur inventore quibusdam. Quia aliquam et quam beatae. Aut cumque aut voluptate natus quia. Provident sequi deleniti nesciunt sint. Veniam voluptatem non labore fugiat blanditiis expedita est.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...