Deal Dispatch – Issue 41
Welcome to issue 41 of Deal Dispatch, our corporate finance division’s regular deal round-up.
Inside this edition
Acquisition of Barack Group of Companies by FT Foods Limited
The multi-award-winning Tahir Group has become the largest KFC operator in London after acquiring eight KFC restaurants, previously operated by the Barack Group of Companies, in a deal managed by PKF Smith Cooper Corporate Finance.
Sale of Hyperama Nottingham and West Bromwich Ltd to Dhamceha Foods Limited
The Corporate Finance team of PKF Smith Cooper has advised Midlands-based Hyperama plc on the sale of its cash and carry division to London-based Dhamecha Group. Hyperama’s Nottingham and West Bromwich depots will bolster Dhamecha’s presence in the Midlands, boosting the number of its cash and carry branches to 12 post completion.
Sale of Gunn JCB Midlands division to Midlands JCB
Gunn JCB has sold its Midlands division, operating principally from depots in Smethick, Stoke-on-Trent and Hereford, to Midlands JCB in a deal assisted by PKF Smith Cooper.
Acquisition of Powrmatic by Carver Group
Carver Group is a family owned business managing a portfolio of HVAC companies specialised in refrigeration technology, air conditioning technology and ventilation technology. The Group headquarters are in the UK and the company has representation in 50 countries and branches in Germany, France, the Netherlands, United Kingdom and Canada.
Click below to read issue 41 of Deal Dispatch. If you would like to discuss your growth or exit plans, our corporate finance team have a wealth of knowledge and experience advising a variety of businesses. Please do not hesitate to get in touch today.
Download the PDFSector insight – Self-storage 2023
The 2024 version of our self-storage sector insight can be viewed here.
With the UK market expected to surpass a record £1 billion in turnover in 2023 and an additional 2 million square feet of space occupied compared to the prior year, the self-storage industry is continuing to flourish in terms of both capacity and geographical distribution.
Following the industry benefitting from positive impacts of the pandemic, this year has been increasingly reflective of the challenges the market is facing as a result of heightened inflation and growing operational costs. Despite the more challenging economic environment, the sector has continued to outperform many other industries, with companies benefitting from stable occupancy and an increase in revenue per square foot.
Self-storage sector insight
Our latest self-storage sector insight includes an overview of the UK market, including how it compares to the international market, an analysis of supply and demand in the industry and recent merger and acquisition activity, as well as looking ahead at the future of the self-storage industry.
Supporting business owners through complex transactions
As a valued member of the Self Storage Association UK, our team supports owners, operators and investors in the self-storage industry in three main ways:
- Advising owners on the sale of their self-storage business
- Advising clients on acquiring self-storage businesses
- Advising clients on accessing debt or investment to fuel growth
If you would like advice about disposals, acquisitions, or fundraising opportunities in the self-storage sector, please get in touch with our expert corporate finance team for a conversation about your options.
Download the PDFCharity news update – Spring 2023
Our Spring 2023 charity news update includes the latest guidance and support available for the not-for-profit sector as the cost of living crisis continues to bite.
Inside this edition
We also consider the impact of recent legislative, reporting and tax developments and other pertinent issues, giving you the inside track on the sector’s current hot topics and latest guidance. Our Spring 2023 charity news update explores:
- Charities and the continuing cost of living crisis
- Charity law reform
- Annual return changes
- Use of social media
- The risks from cyber crime
- Other charity guidance
- Charities in Northern Ireland
- Future changes to financial reporting
- Improving the quality of charity accounts
- Fundraising update
- Spring Budget 2023
- VAT update
How we can help
We work with a range of charities, varying in size and nature – from the very small to more complex groups of entities. This means we can provide bespoke advice on how to achieve your goals and navigate the complex web of regulation.
We have a strong team of compliance experts who are experienced in performing audits and independent examinations of charities reporting under the Charities SORP, community benefit societies and companies limited by guarantee. As well as our specifically trained accountants and auditors, our team includes specialists who understand the more complex tax challenges that the charity sector faces in relation to VAT, including partial exemption and corporation tax.
If you’d like to speak to our team about how we can help your charity, or you if you have any queries relating to the contents of this document, please get in touch.
Download the PDFYour guide to PKF VAT Assist
What is PKF VAT Assist? You may have heard of our VAT consultancy service that launched earlier this year, but how exactly can it benefit you and your business? Our new brochure explains how the service works.
Our PKF VAT Assist brochure provides a concise but comprehensive overview of our VAT consultancy service. Created by our team of VAT & Indirect Tax specialists, the publication also explains the benefits that on-demand VAT & Indirect Tax support can bring to individuals and businesses in a range of sectors.
Whether you are looking for a bespoke advisory service or want to subscribe for longer term support, PKF VAT Assist offers direct access to specialist advice from our experts on all your VAT & Indirect Tax queries.
For more information on the consultancy helpline and our service packages, including costs, contact our team on 01332 374 432 or by emailing [email protected].
Download the PDFYour guide to Research and Development tax credits 2023
With the average company claiming in excess of £50,000, research and development tax credits can be a very valuable asset for companies. However, many eligible businesses fail to claim due to misconceptions of what research and development actually involves. Our tax experts summarise the scheme and its benefits for businesses in our R&D guide.
The term ‘R&D’ sparks images of employees wearing white coats conducting experiments in laboratories, and whilst such projects would likely qualify for research and development tax credits, so will a multitude of other projects in a wide range of industries.
Some examples of industries that may involve eligible R&D activity include:
- Manufacturing and engineering
- Food and beverage
- Software development
- Agriculture
- Consulting
- Medical
For a project to qualify for R&D tax relief purposes, it must seek to achieve an advance in overall knowledge or capability in a field of science or technology that could not be easily overcome by a competent professional in the field.
This could be anything from the development of a new process, a piece of machinery, or a piece of bespoke software, and should be innovative or attempt to overcome uncertainty that exists as part of the development process.
Download our R&D guide below for more detailed information on research and development tax credits, including changes that came into force following the Spring Budget 2023.
Download the PDF2023/24 Tax card – Key rates and allowances
The 2024/25 tax card can be found here.
Our 2023/24 tax card covers the key tax rates and allowances, as well as useful supplementary explanations, on personal, business, employment, property and capital taxes.
The information included in our 2023/24 tax card reflects changes announced by Jeremy Hunt in his Spring Budget, and is a useful point of reference throughout the tax year.
Download your copy below, or for more information about how our team can help guide you through the rates and allowances, the process of claiming them and advise on specific situations, get in touch.
Download the PDFSpring Budget 2023
On Wednesday 15th March, Chancellor Jeremy Hunt delivered his Spring Budget for 2023. Our tax experts outline some of the key changes announced.
The Chancellor of the Exchequer, Jeremy Hunt, unveiled his Spring Budget in the House of Commons on Wednesday 15th March, detailing the Government’s plan of action for the UK economy.
According to the Chancellor, the Government’s plans for growth announced in the Spring Budget are founded on four ‘E’ pillars: everywhere, enterprise, employment, and education.
What has been announced in the Spring Budget 2023?
Alongside a forecast of the British economy, a collection of tax changes and reliefs were announced in the Spring Budget, with a focus on business investment. Below, we provide a summary of the main announcements.
The UK economy and public finances
- The Office for Budget Responsibility (OBR) predicts the UK will avoid a technical recession in 2023, despite forecasting the economy to shrink by 0.2%. In addition, the inflation rate is predicted to fall to 2.9% by the end of 2023.
- The UK debt is forecasted to be 92.4% of GDP this year, with it being predicted to rise to 93.7% in 2024.
Investment Zones
- The Government has launched a refocused Investment Zones initiative, offering tax reliefs and £80m government funding over the next five years to 12 new investment zones. These clusters for growth will be spread across the UK including regions such as the West Midlands, Greater Manchester, South Yorkshire, West Yorkshire, East Midlands, Teesside, the Northeast and Liverpool.
Corporation Tax
- As previously planned, the main rate of corporation tax is confirmed to increase from 19% to 25% for businesses with taxable profits over £250,000. Companies with profits between £50,000 and £250,000 will be required to pay a corporation tax rate between 19% and 25% from April 2023.
- From 1 April 2023 until 31 March 2026, a ‘full expensing’ 100% First Year Allowance will be introduced, allowing businesses to deduct the full cost of qualifying main rate plant and machinery investment from that year’s taxable profits. For qualifying special rate expenditure, a 50% First Year Allowances can be claimed instead.
- To promote investment into innovation, small and medium sized businesses that spend 40% of their expenditure on research and development (R&D) will benefit from an enhanced payable tax credit from 1 April 2023. This will be at 14.5% compared to the new 10% for other payable tax credits also coming into effect from 1 April 2023. Qualifying businesses will benefit from a return of £27 for every £100 spent on R&D.
- The exclusion of overseas expenditure for R&D claims is being delayed until 1 April 2024. This is to tie in with a decision on a single R&D scheme which will be announced at a future fiscal event.
- Until 2025, tax reliefs for theatres, orchestras, and museums and galleries will remain at the current rates of 45% to 50% to help support the cultural and creative industries.
Pensions
- The annual allowance for pensions tax charges will increase from £40,000 to £60,000 from 6 April 2023.
- The adjusted income threshold for the tapering of the annual allowance will be increased from £240,000 to £260,000, while the minimum Tapered Annual Allowance (TAA) and Money Purchase Annual Allowance (MPAA) will be increased from £4,000 to £10,000.
- The Lifetime Allowance, currently set at £1.07m, will be abolished.
If you would like further information on the key changes announced in the Spring Budget 2023 or require tailored advice on how these new policies will impact your business, contact us today to discuss your needs with one of our specialist tax team.
Download the PDF2022/23 Year-End Tax Planning Guide
In all things tax, time is of the essence. Checking that your personal affairs, your family and business affairs, and your plans for the long term are arranged as tax efficiently as possible is essential before the end of the tax year on 5 April 2023.
This year, such a review may be even more beneficial than usual. Major change to tax bands and allowances has been announced over the course of 2022. This means some last-chance opportunities to make use of allowances at current rates and to access current tax bands. Similarly, there may be areas where you have discretion over the timing of income and it is worth establishing whether income is better taken this year or next. Here again, a review before 5 April 2023 could have a significant effect on your tax position. For Scottish taxpayers, for whom higher and top tax rates are set to increase as well, there is even more to think about.
As your accountants, we have the all-round vision of your circumstances that can really help make an impact. To make the tax rules work to your advantage, it’s best to start the discussion as soon as possible before 5 April 2023. We look forward to being of assistance.
Inside this guide
In this briefing, we use the rates and allowances for 2022/23. Please note that throughout this publication, the term spouse includes a registered civil partner. Inside this guide:
- Planning potential for director-shareholders
- Income tax rates and allowances
- Tax and your family
- Savings and investments
- Capital gains tax
- Gift Aid
Our tax team help a multitude of clients navigate the complexities of personal and corporate tax, and work to establish an effective strategy that minimises tax liability. If you would like to seek more advice, please speak to your usual PKF Smith Cooper contact or get in touch with our expert team here.
The purpose of this guide is to provide technical and generic guidance and should not be interpreted as personal recommendation or advice.
Download the PDFCorporate Finance Annual Deals Review 2022
It has been another award-winning year for the PKFSC corporate finance division, being crowned ‘SME Advisory Team of the Year’ at Insider Dealmakers’ Awards in September 22. This demonstrates another great year of dealmaking for the team, with deal activity in the Midlands continuing to show resilience against the economic and political uncertainty.
At a glance
During our first full calendar year of membership within the PKF network, the Midlands Corporate Finance team completed 29 deals worth £346.8m. This includes five cross-border deals, demonstrating our global reach and access to international purchasers.
Since our last annual deals review was released, Tom Joy and Josh Gurton have been promoted to Senior Manager and Senior Executive, respectively, reflecting their contribution to a number of successful deals in Birmingham. In Derby, we have also welcomed Jasbir Mangat, Executive. The success and expansion of our team shows our ambition for further growth and we continue to recruit across all offices.
In 2022, we advised on a high proportion of sell-side opportunities, the increased demand to sell being matched by large corporations and investors having dry powder to deploy.
Inside this publication
Take a look at our Annual Deals Review 2022 on the button below. Included in this publication:
- Reflection on 2022 and outlook for the year ahead
- About PKF corporate finance in the UK & Ireland
- About PKF Smith Cooper corporate finance, our services and sectors
- Highlighted deals
- Our 2022 deal summary
If you’d like further information regarding the contents of this document, please get in touch with our team or find out more about how we can help you and your business here.
Download the PDF