S.P.V

Extracting cash from property Special Purpose Vehicles S.P.V

Extracting cash from property Special Purpose Vehicles S.P.Vs

    It has become increasingly difficult to extract cash from property S.P.Vs since changes to the Finance Act 2016.

   We have developed an innovative method to extract cash from your  property S.P.Vs avoiding the cost and risk associated with ongoing ownership.

 

  • Cash paid for your shares within 30 days
  • You are fully protected by a bespoke £800m Zurich insurance policy 
  • Risk free alternative to members voluntary liquidation

 

 

 

 

 

We also have various option for development finance.

 


Are you aware that without a Business Property Relief Trust in your Will your family could have to pay 40% Inheritance Tax. I.H.T also without specific appointed Business Executors in your Will. Your personal Executors may not be able to conduct your business affairs. Contact  Saxon Wills & Estate Planning.  www.saxonwills.co.uk

A Special Purpose Vehicle – S.P.V,  is a legal entity (usually a limited company of some type or, sometimes, a limited partnership) created to fulfill narrow, specific or temporary objectives. S.PVs are typically used by companies to isolate the firm from financial risk. They are also commonly used obscure relationships between different entities which are in fact related to each other.

Normally a company will transfer assets to the S.P.V for management or use the S.P.V to finance a large project thereby achieving a narrow set of goals without putting the entire firm at risk. S.P.Vs are also commonly used in complex financing to separate different layers of equity infusion. Commonly created and registered in tax havens, S.P.Vs allow tax avoidance strategies unavailable in the home district.

A special-purpose  vihicle entity may be owned by one or more other entities and certain jurisdictions may require ownership by certain parties in specific percentages. Often it is important that the S.P.V is not owned by the entity on whose behalf the S.P.V is being set up (the sponsor). For example, in the context of a loan securitization, if the S.P.V securitisation vehicle were owned or controlled by the bank whose loans were to be secured, the S.P.V would be consolidated with the rest of the bank’s group for regulatory, accounting, and bankruptcy purposes, which would defeat the point of the securitisation. Therefore, many S.P.Vs are set up as ‘orphan’ companies with their shares settled on charitable trust and with professional directors provided by an administration company to ensure that there is no connection with the sponsor.